TransUnion (TRU) 26 Apr 222022 Q1 Earnings call transcript

Good day, and welcome to the TransUnion 2022 First Quarter Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Aaron Hoffman, Senior Vice President, Investor Relations. Please go ahead.

thank joining and today. everyone, morning, you us for Good

Financial Cartwright, call Chief Executive Joining call our on Chief website accompany the Investor morning. slides Chris release Vice We President and earnings and the Cello, me on this Todd are and to posted and Executive President Relations TransUnion Officer. this Officer;

disclosures expenses measures schedules, will replay will and a these as detailed information more on Our and earnings contain well with along website. the available release measures, most Today's and non-GAAP be as revenue, financial accompanying comparable and operating their which certain of call items slides measures. recorded, GAAP non-GAAP to include various reconciliations directly other about be corresponding their financial our

during on release, call let factors because any are this time from recent differ risks and duty filings These to statements not update those in expectations current statements and could in are are statements today's making forward-looking. uncertainties. the that be of subject based any call the and materially discussed described That assumptions XX-Q in also statement. and SEC. in this the and reports with other undertake conference during XX-K, earnings Form most We Form to to our results me do will comments turn Actual forward-looking We done, made the over and forward-looking Chris.

let agenda me Thank you, the start, Aaron, and outline To add let this welcome. morning's me for my call.

I'll resurgence of driven pandemic, performance, our positive I'll been sales the post year X provide pleased by revenue and the our for year despite I'm then guidance months. our EBITDA over I'll and our the the on has strong impactful macro review and macro remainder the guidance portfolio cumulative year-to-date an that we've of conditions growth-oriented full in report acquisitions attractive closed time. that quarter and successful innovations past first inflationary discuss full conditions benefit us performance the favorable outperformance the allow to and that First, the the over support confidence of to mostly year, the our strong pandemic update headwinds, raise over which

and Neustar our a going year market successes markets. in variety first really And of results encouraging to customers with together, for experienced with we've from and in in early interest full quarter For Todd wide the to pass quarter second XXXX. then particular, discuss to Sontiq across detail, along end baton guidance I'll

organic the previously, portfolio, emerging market consumer in Now strong post-pandemic we guidance, along as markets. our in I expect with our resurgence conditions international and the mentioned lending, revenue to growth-oriented verticals U.S. support XXXX in especially

a impacts markets. lot in Household near relative well to focus U.S. on and income that remind consumer the card rising debt levels, are credit this, low remains credit remain loans by a with I delinquency balances the respect are to to below for most and position of low of levels rates is Average inflation historical levels. the While justifiably today record standards. you long-term want strong prepandemic

remain the uncertainty performance, but who guidance ahead. credit acknowledging the and March from in and growth, quarter during recent large in financial to inflation, grew potential many as We wages noting positive X.X%, this fell rate unemployment institutions provided X.X%. loan to increasing activity much Despite well heard the Additionally, pragmatic consumers earnings, and the strength economy. by drive spending also current positioned the

costs. ability consumer diligently income We health, absorb have that rising continue to to households particularly lower monitor less

to curb interest As rates Fed corollary important an have seeks inflation, rising become discussion. the

on our business. various As interest such, the I'll that end of this section impact addressing have by lines rates

refinance or and the interest dictates simple on though represents rates described, the on whether consumer, for on impact where They a sense overall has shop a originations, cases. some the makes part greater of based The I've along just long which are certainly an don't market, unsurprisingly, rates behavior the refinance influence consumer the the by purchase payment it on Mortgage consumers math rates. part driven to lending health have market price, entirely rates shop not the almost down impact a one based rates mortgage. borrowing rates. While lending in solely of terms. calculation, monthly purchase with on of the the and And payment one have most

a For the impact average carries. modest given American auto have and card very lending, balances rates the

the $X. every card For X.XX-point on average monthly rates, by instance, for in the increase in only an balance payment increase into translates that

impact So we far these products. to loan see for less tend from rates rising

broad-based shifting regions the quarter. and exceeded our that growth positive our across verticals healthy as as momentum our by posted first ongoing to innovations. with guidance, businesses our and results well buoyed benefited We Now as from wins strong business consumer

As the mortgage remainder Todd also our business. and to full year year us nonmortgage raise aggressive broad implying We that allowed will discuss did declines, in business view nonmortgage for detail, the significant while of a more our around quarter guidance. in assumption our an and of first has outperformance embedding our improved acceleration

into We by go-to-market executing repeatable, adjacent markets. above-market growth on our performance drive playbook differentiated focuses approaches, industry-leading to and complementary innovation continue that expansion

workforce we positions about we in the in steady our they across and we underrepresented provide of solutions published fraud and U.S. report, And performance XXXX in business our Todd of Insurance resonate providing valuable a Pacific, We strong short across Our position to Financial Internationally, summary our wrap improvement details which highlights more last with market provides efforts. diversification have of net-zero oversight, XXXX published growth, a performance This emissions organic another In I of strong achievements. picture other let and underlying issuing and sustainability week, will credit we with shortly. the segments. which leadership of goal, and high-growth continues all made And fast-growing data, enhancing diversification extension into on very our excluding me along last experienced customers with each other strong many growth our privacy emissions India, these Media. markets, hope read setting trends. year, markets, to in cybersecurity groups. meaningful ESG have double-digit delivered our these carbon with portfolio. robust these in take improving diversity, updates. mortgage, quarter Services, data broad growth businesses Asia our up and highlights you'll progress America report, further our and in a we time including the fintech complementary marketing where baseline Latin while recently diversity workforce

share of a to want our the few we've market ago X X the the of Services. I backdrop value performance of I my before minutes acquisitions and that to current the do acquisitions, closed that, described really recent Financial I with you particularly over with the Now I that want accentuates highlight to that use Verisk past the remainder But time months. Neustar

Now can attractive insights both timely segments landscape. via and changing find of help these market lenders the within the drive

The solutions attractive Now strengthens applications. Neustar a substantially capability starting powering Neustar. through serves our markets: identity OneID up currently the first X% of at growth for margin and quarter, resolution nearly identity Neustar marketing, million provides of platform, a X variety its cloud In resolution generated in double-digit that and mitigation acquisition revenue, with real-time of another in marketing quarter XX%. communications. of total, with online $XXX

quarter, we identified many have This high-quality benefit Neustar, In clarity long-term also and employees. the some the difficult. quickly talent ensure made valuable acquired and helped Neustar the benefit many been functions technology, I in Internally, would efficiently thesis. from scale together has completed that employees development increased expanding our from nearly areas and extremely that adding to want the encouraging data we really science, received retention far. we've thus brought to feedback and customers retain current and very We've integrating During progress workforce learnings from of capabilities. and order critical gained note from the that the market provide environment, organizational fully meaningful critical we've design have support high-caliber product like we've competitive and with in XXX% of our to others. efforts talent quickly growth us critical our so top

under as Venkat our further business. through we organization data Achanta, brought of area analytics by critical leadership For purpose a own and standing of instance, up and clarity its the

development has Venkat extensive data Neustar's impressive Now the platform. experience of in OneID and drove most and notably analytics,

of Our formed newly both have each collaborating capabilities already with org companies. and from to better one internal stage teams part benefited powerful other and assets of the leverage the setting as

ingest, commercial the to we analytic during understood speaking diligence, is integration to extensive prepare increases better our development even them particularly system's This to production ability and tag and understood. cross-selling OneID. to we've standpoint, for the into than we integrate and begun index drive training Through From to solution more rapidly. of process, and customers deployment performs advanced than and data platform learned the including teams, assets Now ability solution our data across it types. rapidly a we've activities utilize put our sales

door of some opened substantial in from fast-growing differentiated successes the field. and vertical. opportunities views marketing combined early the Media share and offerings, me the already let TruAudience to with our have more Neustar, Now from solutions The our

In solutions Our the as mid-tier these of pursuing cross-sell and levels meet our we in Insurance secured In early to teams solutions U.S. Neustar its opportunities currently we have Financial clients. interest with traction customers. high actively sophisticated extremely Neustar the Services, had markets, key to approach taken the we've X other continue to first a with a coordinated have lender, and top contract to underwriters of provides

on discussed a to an insurers Our our for of have marketing given optimization of combined XX of one significantly considerably year, a relationships XX of marketing as in we return impactful existing deliver players, the as organic result clients. another revenue there's by Neustar you largest the year XXXX, growth TransUnion In marketing indicated Neustar's and U.S. the end about XX that recently fraud. of expect solutions their the to the financial to we will Neustar and business. shows they of returns. almost marketing me spend collection driven ways customer has bring their integrated with other the teams to the call And this rest single-digit performance on in -- identify And investment trade has solution. time outbound are how by high insurers base client met now the intelligence billions in signed to drive solutions team spend they each and collections, same first existing collections marketing And individuals XX use with on our Neustar's and the largest an to that and for looking improved with recently their rate heard contract dollars major and better to sizable who best sales calls. we hit attended with of has third-party cross-sell phone-based TransUnion marketing that customer now opportunity expectations The improve capabilities for who let type reminding on think array the consistently currently similar of top also TransUnion new been strong

to expect and 'XX low margin. in which beginning in roughly deliver adjusted a we're and imply We million double-digit the revenue EBITDA XX% of growth business 'XX, expecting $XXX would beyond,

colocation improvement XXXX, begun the clear Neustar X by activities margins sites. our XXXX its like time, program synergies them, we and we included at the in million supporting integration benefiting working in part, consolidating Now and same path sight before we've reduction a we In acquired progressed from process. increasingly has that become At XX% deliver have line confident X least to centers as $XX together. data and of the have cost and are through cost to

this phone we to consolidate that we're address, in Chicago e-mail locations organizations which For across of instance, costs name, we've sets collect data reduce and and both dollars. begun will happen to to And data London, related by leveraging also millions office the year.

which to e-commerce concern environment, ID identity market into an been of consumers of fast-growing a the driven the provides point about In that's Now evolution. rapid have by entry Sontiq, awareness theft. risks this and turning protection heightened

materialize. In during growth. considerably generated approximately seen us Also to this which XX%, revenue, access up quarter, first began the was opportunities depressed margin slightly fueling strong market, a allows quarter, part a costs. activities Sontiq meaningful of Sontiq have roughly and roughly XX%, in our $XX of we the million long-term integration by larger at integration

U.S. Our teams our teams solutions, as their global in especially collaboration and in such and Insurance, operations also are their international Interactive and Services expanding our go-to-market and but capabilities areas as between leveraging well. Consumer counterparts, fully across teams Market our Financial

nearly We've in position on in trending ongoing ahead Sontiq a Sontiq's protection portfolio. on clear Financial Markets Sontiq momentum Sontiq's and nonfinancial about instance, integration be ourselves in capabilities. For we quarter addition We're of solutions of the the on we've insurance expansive the customers an identified revenue believe our are encouraging the Insurance on to for strength of today, contract will the to similar currently represents a identity Sontiq's selling of in and the bid Services, U.S. many margin. the a business existing plan, expect solution also opportunities XX% expand costs, space. strong start the first interest underwriters. our of suite, relationships integration, our positioned space the to XXXX, revenue we such mid-teens to our sizable based of services we path off is showing at network opportunities. Notably, across a a based see And and in growth excluding that which

up We Commerce X to and to retain the on wrap acquisition remainder classify decided sell the an let intention Services. operations the Financial and the a marketing as to of April these Argus and discontinued Now with me assets. Verisk of transaction have with business, completed Signals, portfolio

positive full As of new transaction Argus in core while assets business wallet customers million link data $XX revenue energy we'll insights identify our target to to whether by Prama Neustar helping on to divest data credit-based customers our we're take With consumers action profitable thought $XXX action business the they Signals. powered The more through through and consortium solutions, to those deliver in Argus' decision asset Argus or differentiated a help platform enhanced in interest expressed strategies deposit able million ownership in we'll who measurable many and powerful of be view. our traditional to also report a able be leadership very level transaction ownership. card total And delivered from Commerce we're unified happy technology-enabled OneID. the the to consortium to feedback our allowing increases card enhancing create benefit this, enhanced consortium, develop fraud. about from existing well are consumer on We've this IP as generated data noncredit-based insight desire and with outcomes noncore patterns other sophisticated and from lenders our getting from coming have to brings to their Argus the the refined sources insights. as insights and to not for Argus' heard a and about and across personalized a using insights, We to reminder, can that modern for TransUnion with capability. TransUnion's the members. And order participated focus the platform. to joining members from benefit will Argus or do have the XXXX, also in

with 'XX, digits, the we margins costs. though single expect In we in As then we margins double period goal XXXX, integration and low this our trend we temporarily as single in reach to XXXX, margin expanding depressed the high absorb Argus growth as integrate digits at we necessary anticipate to of in a over in XXXX. the low XX% improve toward digits growth

up that backdrop, acquisitions. on the of quarter performance my key Now update market wraps and these first X the our integration

the and Now well. quarter through Todd results, I'll financial you to to over Todd? walk full our guidance quarter first our as guide turn second the time year

my with Chris. welcome financial let everyone And to I'll start add morning. Thanks, consolidated results. our me off this

a added points and quarter XX% currency and Sontiq organic constant and First X%. about was basis. XX increased revenue to constant currency reported consolidated on growth revenue, Neustar

EBITDA XXXX basis. a from On XX% basis, on about on fall XX-month on an represented XXXX, and organic X% quarter year grew revenue, mortgage XX% mortgage expected currency of business full our trailing currency of Adjusted a and XX% reported is for Excluding a constant that XX% first and our the both to to basis. constant increased XXXX.

the with profile Neustar. basis XXX the XX.X%, adjusted of primarily margin points was driven margin quarter Our lower down ago EBITDA compared by year

the Sontiq would margin the have both Neustar and been Excluding acquisitions, XX.X%.

depreciation interest EPS expense by amortization. EBITDA diluted increased by offset growth and adjusted adjusted quarter higher and First driven XX%

the to Verticals. at have points EBITDA as to reported The declined up and X% into basis the Neustar. Organic segment Neustar's ago points, Now quarter. Markets U.S. the Diving year margin by Neustar vertical. results of with growth revenue had was at or about on an the financial excluding was by this XX%, organic time, impact decline basis. on of we of Adjusted results increased due X% XXX quarter. for within performance looking compared financial Please EBITDA Markets the mortgage. growth. Emerging note included revenue that an basis XX XXX XX% for acquisition on U.S. XX% points acquisition Adjusted

a information. evaluate integrated structure excluding As was updated business, any and grew you operating X% our we financial we XX%, provide necessary Services revenue with Financial fully as will up mortgage.

markets. Looking end mainstream. personal considerable large particularly focused more loan for demand be lending purchases on and individual expansion, investor with have loans as Consumer strong, consolidation continues at the thoughtful to very become

pun position Our share that also This data. inclusion are discussions financial BNPL will of utilize BNPL XXXX, lenders also market to data as the BNPL strength promoting consumers we Based activity. our get and grow on of during to our all while enrich on who enable we intended, the them gains. with confident will the continues lenders, largest loans greater for will credit, many furnish no their for credit

review. portfolio incremental and in share We customer business good pursued further strong anticipate our issuers remain as We continuing trend credit as origination acquisition marketing a activity. focused growth of also XXXX strong quarter in wallet, had card and issuers historically on another of

satisfies and new interest by for on-trend offset traction their consumer delivered remains XXXX, assess demand moved seeing particularly to Payment high. have rates and digital inventory auto Link which platform for innovation, shrinks pool. end-to-end retailing, business CreditVision desire well-publicized to mortgage, in new also consumer since Shopper, wins better financial consumers shopping. greater to seeing related cars digital level powerful even refinancing alternative with utilizing We're Auto online We're quarter inclusion the helped and solid auto issues that highest And data. the greater as for drive considerably Our potential retailing a used growth as business in

rates. side, consumer XXXX. At be desirable revenue year by full for expect we On constrained particularly continues time, decline to remained and the solid to purchase highly but this XX% inventory, about limited in mortgage our rising business demand locations

We the measured by XX%. as to market expect mortgage inquiries down be

We than better expect perform volumetric our of pricing business the slightly to increases that partially result declines. volume market the a as offset

Let our Emerging basis reported on a me to revenue and XXX% now which with the XX% excluding associated Verticals, turn grew Neustar.

the both Driving Our out traction eviction continues we and has Neustar Media employment new driven built which investigative accelerated due employment to as quarter we growth by large which in moratoriums. Revenue as soaring growth. differentiated a reflect solutions paid and highly EBITDA organically Public the the media continued about the National for and can believe marketing increased media key TruAudience markets. of perform with accounts platforms. Consumer double-digit future. channels. as these employment delivered indirect marketing double-digit in XX%. the Record on and screening the moderation both Insurance on particularly down continues and Solution, both as substantial organically and capabilities, mitigation. the opportunities has and to demand slowed movement deliver increased COVID. Sector from acquisition, of we spending any The expanding existing DriverRisk, related rental quarter by streaming enabled focused video direct up channels, includes Sontiq, screening TruOptik remains particularly digital TLO-based habits indirect with don't wins, upside anticipated credit-related acquisitions screening well, tools, in and strong also were platform and incorporating strength to Tenant reported strong XX% changing with moderating very like upside from was ongoing coming of in prices innovative and consumer tenant direct drive in Interactive, further business on growth which the delivered very was to extended fraud to new deliver and expanded with levels another Notably, continues companies basis XX% TruAudience vertical a marketplace, the signed and relationships revenue was large life several agency solutions up across X% declined commercial impacted good though by consumer the Adjusted was

the market down and segment than insurers more protection consumers expanding trend We the This case expect be this or slightly time over revenue as the subscriptions quarter. via quarter and in those in further Sontiq more others. theme into broad strengthens provided to the durable the and often for are by to market first second employers, to the identity persist acquisition are

For comparisons currency. my constant comments be all will in about International,

regions. For revenue improvement the a XX% saw segment, most underlying we revenue as as in International for growth. the total market EBITDA Adjusted our result grew of of increased strong XX%

specifics into U.K., Let for increased me each In revenue dig the region. the XX%.

government contract. benefit to from a meaningful onetime continue We

we XXXX, Excluding would some due the and that in QX U.K. markets in under so and constraints. as by X% been rate impacted recall underlying underlying rates pressure XXXX, increasing to as through revenue we performance growth comparability we X% in auto This impacted contract onetime QX about expect the was have have Also revenue, seen the starting Most XXXX importantly, quarter. our grown to growth mortgage to also with inventory QX be of business quarter digits. growth benefits the healthy. and next remain that started lap high reported was single expect the so ramped government contract

space. BNPL performance So continue the the to see quarterly our we lending U.K., performance to in the solid in most back across solutions, notably moving fast-growing

first a financial while into into now ensuring borrower's to we accept February, consumers a picture BNPL with Working position. able data bureau to have also our fact, this this using comprehensive providers, are we incorporate that reports data closely finance files. credit credit of In BNPL point-of-sale support lenders can of became U.K. in the prominent type

in and benefiting to vertical, our from gaming set helps solutions We open is banking by and physical is highly operator casinos the participant's also bettor better This our strength employ bet. the to ability continue help and a capacity to limits which and appropriate determine regulators. see encouraged gambling online solution to

first business year X% growth Our remediation portfolio quarter, grew significant I the breach the in mentioned calls. to the in reflecting on Canadian quarter, the several ago offset a business partially which by have across comparison past

revenue the nonrecurring business, Excluding have breach X%. grown would

We the significant in expect see a second second quarter in year. impact to a breach effect similar of the the half and less

Indian We continue to see XX%, lenders, stronger and growth strength India, for across the the business both with the fintech successful improving the drive quarters. GDP innovation rise along demand in to rising with up market remains lending portfolio. continues and card traditional of grew along helping we and fueled our well expected strong in consumer healthy inflation, consumer credit diversified an spend of X% growth in to and the of This us continued benefits coming credit aggressively. a growing pipelines nontraditional from X%, XXXX, BNPL market In reflecting Despite setting trends, and the issuance, resurgence and is with in players. by

in particularly Kong with strong shifts by in recovery longer This and of positions CreditVision lending the markets. uptake Brazil. of outperforming direct-to-consumer. these grew reflects largest lockdown Pacific, our and in under is the good start to the to broad-based like and with fundamentals, our relationships our market and into Hong growth spectrum, neobanks, In than Latin Colombia strong commercial with growth been businesses revenue XX%, fintechs outstanding wins was double-digit allowing and which and including markets, of and market, markets, fast-growing and the good We entire This up share new credit In growth business XX% macro ongoing outperformance our driven growth Philippines, including with America, diversification had Services, continued along we in across approach innovative solutions. continued strong underlying Asia fraud performance by Financial and this capture continued while consumer the also other have any us driven meaningful across players, very and the market.

as businesses Finally, on increased Insurance market, Africa continued as of retail strength meaningful of outside X% the well our Africa. largest our growth South and

be Adding Verisk of payments, these balances. to Factoring forma in Healthcare. $XXX to solutions. typical balance the cash excluding the adoption the also cash our $X.X more see line billion sheet TruValidate balance ended cash Services to on the would as but second sheet of Financial and credit the end, as discontinued we $X fees deploying held roughly have on million, million billion approximately the with those closer additional $XXX million classified continue commercial purchase and result be we sale Verisk roughly a leverage and Financial ratio cash pro our of equation to $XXX forma We We also of expect the with leverage of for associated in the and of X.Xx. quarter paid operations, our debt X.Xx taxes in deployed and of of Financial and Since with for quarter taxes associated quarter purchasing Verisk cash businesses pro CreditVision, Services. Services

by of to the end XXXX. However, to expect delever X.Xx we

sale general the We business for Services expect to Financial purposes. noncore use the of proceeds Verisk corporate from the

quickly to free on Before flow. comment like turning I'd guidance, cash to

Signals our cash expense was This was related notice higher second primarily will and the businesses operations treating to Commerce we compensation. first of acquisition statement to as last due That that year. from and year. and capital us of XXXX cash than flow net our primarily though, the discontinued quarter working related brings to You increased All notably, higher Verisk noncore incentive as business the and guidance outlook to called are for Argus only reflects provided divest full on. intend the quarter Financial lower Services, the interest usage

$XXX the with reported was on million April our the of the As a The guidance date. amount Services. $XX based quarter. contemplated second Financial X in Argus reminder, for million $XX on XXXX, is revenue Starting for million closing Verisk XXXX prorated

Neustar Services' to Verisk Financial points, decrease EBITDA diluted XX% acquisitions, a to in from to We share reported XX%. expected of XXX organic organic be million, expected $XXX is both expected and of margins basis XX relatively guidance in on X% X% to XX.X% for X.X-point XX% billion, revenue impact to per XX is to approximately Argus. on XXX XX%. constant points between an X $XXX Revenue X primarily of lower constant are revenue, to to and meaning expected basis FX mortgage, up Neustar, acquisitions as Sontiq to increase or the basis. FX headwind $XXX Embedded $X.X the to decline we and X% XX% the revenue and $XXX EBITDA. And million an Adjusted is about Adjusted and an $X.XX, the a headwind XX.X% expected XX%. increase full for M&A. expect immaterial currency between to point anticipate be On organic an basis million EBITDA business Revenue adjusted an Adjusted also an expect as is to of and million is revenue, year, between will margins. currency increase basis. of on earnings we And expect of to on of come benefit between XX% expected is billion points. $X.XX excluding result incorporating margin our basis, approximately from to be and remainder to grow benefit to we that $X.XX our from an XX-point a from

X includes full guidance mortgage from for headwinds the year. Our points of

to basis and the driven during guidance point an organic call earnings basis full first our February constant increase revenue over outlook. a year currency increase XXX by to excluding our expected is provided year that So improving full XX%, mortgage on outperformance we XX% quarter the

to also U.S. mortgage. mid-single business segments, Services mid-single Financial an digits, be Markets expect our up up excluding expected but excluding on is XX% about mortgage. up basis, digits, but be mid-teens, organic For we to

is $X.XXX decline a EBITDA up on grow anticipate to be We constant organic prior comparison. digits, guidance We we over digits. low Verticals Consumer between XX%. to a billion, that Interactive year slight challenging expect digits XX% result previous double up low of expected to teens billion to and basis currency expect as Emerging and in an Adjusted single double low International will the be terms, low of $X.XX increase

XXX adding costs XXX previously, prior lower acquisitions the acquisition to same integration decline is the the this to Without compress margin basis Sontiq. remain for guidance, we margin by XX.X%. greater adjusted slightly our integration year and expect Argus XX.X% is at by compressed points a of We to driven margin margin the Compared the EBITDA to result range would that a Argus costs. provided business in further addition, lower-margin

we to time, control due portion, million, forward of implied expected in this of increases be excluding modeling in XX.X%, XX also your points complete be the We Adjusted XXXX $X.XX, about expected million. The these you per from at step-up on significantly range our A LIBOR Without and adjusted rising XX% year approximately most of impacted the anticipate LIBOR top up up share. the diluted and increased We up help share share amortization subsequent and $XXX rates. also to XX.X%. organic And due up XXXX, for be end expectations rate is expect and modest earnings basis. amortization diluted to future expected of curve. between margin adjusted expand about higher basis higher earnings from $XXX earnings continue by to the expense to our adjusted the from expect in tax be Depreciation approximately is change a the would change to adjusted $XXX as XX%. be $X.XX to result will $XXX expense be million, about from per earnings to expected headwinds, million, $XXX interest share that to our is per slight and per about slightly our expectations. to acquisitions, interest EBITDA $X.XX net adjusted from rate tax diluted increase is -- an LIBOR million higher

XX% our reminder, fixed debt about a instruments, XX% hedge and using floating. is As is of

Let me debt, therefore hedging spend interest our for a prepay increase moment expense would lower sufficient leave we strategic to leverage, want recap decrease to We to cash philosophy. room purposes. other flow and which ensure

hedging also turn finally, in which position. expenditures to back capital Chris We the we expect the being want And at at of I'll revenue. speculative some of overhedged, to TransUnion X% now call would final about to for come avoid potential comments. place

aggressive Well, our We meaningfully integrating raised despite for differentiated that expectations to long-term of portfolio. position quarter while diversity further quickly mortgage delivered us our another This Todd. strategic conclude, declines. more de-risking strength growth. with guidance and strong for the outlook our Thanks, also acquisitions TransUnion reflects

very continuation another good expect and growth driven XXXX year playbook. the in by conditions our of the market We of constructive execution

remarks. concludes that [Operator prepared to glad take our be And Great. Instructions]. now And we'll questions. those

[Operator Instructions].

Our JPMorgan. with first question will Andrew Steinerman come from

was per at that I'm Analyst did like XXX to operating will down and will due I It's basic this ask -- margins and year ahead acquisitions? potential organic basis question. acquisitions, show Slide But on Day. highlighted margin after basis. we years points margins you including to know Andrew. to still 'XX, be in points be margins 'XX, I assured basis could past How XX your asking XX reminded today expansion I'm about up the be to expand wanted this be that that I just year an where

Andrew, take I'll Todd. this question. is that

confidence So to growth the just to expand it's instructive as it drivers remember our that able I in pertains being to margins think XXXX, we beyond is anticipate.

we very deliver organic which significant very to has bottom to to continue line. flow-through the First, growth, a strong revenue expect

that So think bottom product many deliver, categories. will about TransUnion going that line. and innovation the bolster that also to to has will in continue We're the -- just leading

then In shift addition the inorganic that, to to you to piece. have

margin to have significantly with now Services as Neustar, being Services grow. are talked roughly to so now, about by secure the similar which XX% go costs will lower adjusted first by just and normal it EBITDA Financial Sontiq a there, weighed to committed high nice grow Sontiq the we if single primarily remarks, XX% than starting grow, you But where TransUnion, Neustar to TransUnion's, the synergies those part we're to, did in synergies. about and a a -- So back of generated does acquisitions. to business or it his and Sontiq acquisitions which Neustar, there's believe about X% also continues quarter flow-through that margin the cost the of it's a forget carry currently continues of and of down but the margin. Verisk recently-closed make in grow as we business business Financial the Chris don't Verisk right but integration profile $XX XXXX, expecting that as million, we And digits, which end it to we

been So hard, working again also being as very the to the savings. find team has Chris talked integrate in cost organization those to but able about,

So Verisk then businesses. seen have we you've confident lower then to we because on the of and similar this which, of as deliver businesses due we morning, primarily in again, it's able that I piece. Argus the businesses put close that Sontiq, X, our And margin, into this -- Financial feel And of Right we on about put Signals. the the Commerce very Services, being April those turning a now, year divesting will to integration expenses are and be a way remainder and to guide market away you'd impact begins we're think TransUnion the with have be make to again, it to as on of importantly, again, the as us Argus costs rank integration change eventually TransUnion. we that the that product, will have profitability, significant part able to well. for incur to go to that deliver as we But business, go and the the expect we of part well future the begin way to business as to as will as -- outlook

Yes.

lot all year guide. going And We reconfirmed we deliver margins those the a are confidence And the details. of to we've that full Andrew, that we're right so, outlined. have

can improving we're of provided core. the the margins when regard to business. the we see With we ahead initial You Neustar, guide in that acquired

way guided confidence of lot we're deliver a executing got that in the will margins we've that a So we've to.

with will Meuler Baird. from Jeff question next come Our

would before performance you're that margin onboarding at you than lower want just on onboarding that or invest retained of incremental it to the out question. Argus on said took it there pretty effect? that, we how like conservatism your lower? some think I see the But much acquired cost planned at when good any base that margin, expected, you're business the margins and another were Is you're then with you the previously if comment I of on I planning behind QX a this revenue previously some so had a has implying that. with comes the normally, you But lower on guidance. guidance Is that Just asking to old love divestitures margin lower any margins. upside, the acknowledge that it the because methodology know integration aspects the margin. on EBITDA detail good it on revenue dilutive anything of

on comment any So margins? QX

kind And of a take hearing that I'll in different one. of questions Jeff, I'm think couple I there.

first, think QX. you're Argus asking, on expectations about and what also with happened just margin, I then but you're asking about the

tell So don't you first -- we start in why let QX came where with me just with and margins.

buckets but there's you provided go the mix. can that simply our back increase EBITDA that the clearly, in variable in mix so the but strong just that. mid-range we on indicated. with us, the high than revenue, February. have being million that up, of on We kind some And end X drive for product also million guide already higher costs did guide $X revenue performance, The a was that And drivers into revenue, see revenue, we costs fall first really as of of adjusted were $XXX you of

So that's number one component.

compensation-related had increases second quarter. The within the component that primarily to we relates

we've lower the take think get away that committed in XX.X% just acquisition full most margin QX, to from comp. is that to year we but before materials incident to capture then timing-related Services Africa. I is also included. Financial And in just later we South remediation margin took data pertaining the the some there's to the But the third what's to what items today the category is was think important for There's were that yes, year. in incentive the will that, some was simply efforts Verisk the back I

given, to pieces. a -- yes, moving have that, your expenses lots updated able Argus were to to within bit If we're of margin, the we little higher, we've guidance but I QX, managed the be -- flip flat. we've to over stay question So pertaining

decision Verisk with profile, businesses, are divest and obviously there's participants in of Financial and and familiar move with hold -- Signals to starting lot the this Services that's a other Commerce to us making the most call Argus point. know but X that But those the I on financial the -- the So everybody's within only numbers.

kind that's thing. of one So

is integration then, The expense. it the second M&A thing

for back, pertaining anything adding Services. not for are non-GAAP Financial our Verisk integration the We to metrics,

We are for Neustar, time the right, and materiality. just simply because the of

doing. add too, -- So to what we're clarify as Sontiq and well, just

and integration very I'd burdened, our say for gets aggressive. Verisk Verisk, efforts So they're

spend that's in So significant amount for meaning contemplated XXXX there's that of a business. that

And Yes. exception our to deal. And not the typical size to with approach what an Neustar be of is right? just expected, track on exactly back. with We This made just add right? is Verisk, right because we it clear, we're the of

question will next Balsky America. Heather Our come Bank from with of

business your that them. staying with consumer regards ask at Can talked you about lower-income But in appreciate about you're And now? I wanted to particular your sorry, you're to a talk and your the call. consumer you environment. just the -- color and to watching of how macro right exposed question close the call about the consumer thinking start and the to seeing how is what

in well of various are Wages that. unemployment. robust. X and start spectrum, There the households And loan high is happy was income lower as infusions all Well, U.S. overall, consumers million of a whether sources, the of increasing, of at look, in to perspective, There's have end beneficiaries course we primary I'm On market's lot know, of or pandemic repayment incredibly it pandemic. of top almost opportunities. over the the very employment unfilled from at they are income be employment income the income, of U.S. of an in balance that, the Sure. as delevered the in a lower ending this. shape. consumer good currently. the were X.X% that We're Yes. forbearance the as right? From during sheet jobs abundance government

this So we banks their pretty positioned. you believe, they the believe results earlier and consumer is they reported if follow well season, the that as

employment factors the relatively about on there and income, household in the balances high there impact are but card lower-income low intermediate consumers, of and rising consumers, leverage particularly offsetting is concern like and general. course, Now inflation rising credit

there's to issues a for really the the and there's also ability mix consume, So out of lot to consumers they their consumption positive have earn more and pent-up the the and have of that a to period, think So pandemic right? ability continue to of leverage, we coming XXXX. still shades increase

Our next will come question Ashish from RBC. Sabadra with

and wanted to just on fintech focus BNPL. the I

the tag talk have talked as the particularly the or into about well? half U.S. You your lot wondering, And cross-selling. back going of was a there conversations Can obviously the year? talked that, slowdown you the just onto the you and to in kind I in just Neustar indicated fintech customers traction the also you marketing about also in your Neustar about maybe strength but any with fintech, activity, of also with the any demand have international markets. -- they of

happy be I'd to. Yes.

international interest your BNPL because you to slowdown. is year, quarter, on share the growth-oriented. to the over in classes We've earlier and nice in And you this our at answer the and and question markets is that going and of for we through in of attacking where But public in in increasing. where remind higher-growth And And we no, Financial think years. Services attacker the the strong, as XX% in emerged have is optimistic emerging the we compete. we've the look return sector disproportionate we're the that has commented economy rates. of And period, our independent the very of then would lending any again, to insurance, division, increasing and we of a consumer rates. got the of We've have portfolio pandemic U.S., that middle results solutions from the in And Financial emerging markets. there's from got among BNPL you and full short I which also taking sector, in we markets fintech market realm. toward going share. is resurgence overall, borrowing skews if don't the with portfolio is are about our kind share contribution Services we've got the trajectory in demonstrated And grew the economies what performance we're fintech of, pandemic, investigative but mortgage an in U.S. deflation we rising look positions firmly we be the the the if first to largely disproportionate growthful the many emerging lot So fintechs now in that a believe

the if very was you just about color. you the in wondering That's if talk mind. traction helpful I Neustar maybe fintech don't side, could And

services those Well, some Yes. companies look, today. of Neustar

of And our an Neustar very in partnership between and time delivering excited the forth. investment think good fintech, a execution the coming the enormous thesis services, truly, X now power to with the about both confirmed. back of about to deal has completely some exciting. good potential complement With in Not the Neustar and cross-sell results but spent there's the is in I'm into opportunity cross-sell on I Having cross-sell, the really quarters. been and Sontiq, integration focus TransUnion, coming just just

Our Kaplan next from Stanley. question come Morgan with Toni will

growth year. about ask ex-mortgage for Wanted organic the the increase to

Services, also the were on if you by sort expecting than what points. it maybe think color about thinking the about additional thought. leading And year. verticals XXX Financial you're the better originally XX% you previously organic So of you some of? main -- you raised which performing than better give talk just just of drivers to there Could sort basis Maybe are about you expectation ex-mortgage for

have difficult particularly. up coming next You comps quarter, some

of of in changed the hitting sort talk confidence those numbers. Just and what's about the ease

to question, Todd. is I'll take us this Toni, one important you. your through with an which for is go

with Services So an and the on Financial basis updated we just the in start me confidence organic guide mortgage ex first impact. that let the have

there, just what said, little very back in to just The for goes marketing a And some first, to we very from the particular, fintechs this be strong bit So highlight previous fintechs. Chris question. the seen within activity continue us. on to more have strong

significantly benefiting the in expectations us several quarter in the -- the also position TransUnion that that but through space only first for last QX. QX is over in built not our years So has that

I from players in BNPL the but smaller, strong, addition, from at and as in to earlier. positions International growing, said benefiting with, credit Also operations we're my remarks as marketers U.S., and they're benefiting side. be to again, significantly on more as in find side, but that aggressive them customer we the that Services, the the within well, stronger also we beginning, our continue In have -- marketing acquisition highlighted Financial the the I they we're on be card

continues as customer and continues double-digit drive that's just it a can The Financial So Services. The driving areas gives in Financial the that's Verticals, Services, that base think other are there for us everyone the at of I'm team grow sure definitely TransUnion, the to a us big very into appreciate, and for customer confidence Emerging vertical another shift and to about in for Insurance, pace. out growth to us, needs. innovation sophisticated solve the driver

it. out of in build grew based a The capabilities. we part big XXXX vertical, the Media that's acquisitions that made to back So significantly our we on had

grew also only African have amount very and And portfolio but India, with about Asia our growth is We well, highlight posted not coming of predominantly think is built, feel position business And most So XX% we particular, of emerging is where business just expecting economies is then Pacific. I the or from. XX% we're coming that greater even Latin quarter. conviction. Media. results, than that I from in marketing America, we really the in significant And would where to in a like Neustar what that more performing it's business continue. importance the And there, and that couple that you that International have then the good strong

conviction So that's what us overall in gives the the the that's -- guidance.

Yes. The this broad-based very good news is point. it's at

Barclays. come will question next with from Our Patnaik Manav

well. where I of a And you mix how as X like levels that Just at at on those and the just verticals like would you little hoping looked today? specifically, talk too, auto hoping I level, guys was they could and high maybe side, the pre-COVID card mortgage kind versus if look bit a gave was you are us about assumptions

strong if auto and look supply the as Card, is and strong the issues. of business, pre-COVID U.S. part holding our about despite levels. again, consumer parts up lending, all activity a focused well And discussed of that you very on chain frequently it's well, at very Look, here, Financial piece material Services which group.

overall, and performance understand with all a So in strong which Services. we've Financial talked again, lot on mortgage, going the exception of there, is about what's

you categories sense any how curious, those the of the you've just for mean year, laid out I X of for mortgage? made just assumptions it kind on like

I I have don't we Manav, to what think anything than would Yes. more had earlier. say said

just experiencing, meaningful there's I the the things I driver inventory it's in in with. auto reiterate that back. card very just aggressive to marketing space, the So that, -- and space, that a issues we earlier, the customers then relationships said for we us are there. what but with And demand, we're I could mean, strong That's holding continue have this is see

the is we're again, market a highlighted space. to to that today. what grow cars sale of able digital of goes innovation ourselves we the still differentiate as to more it in lot that we're is, able I And brought just that So like the

Our Blair. next Nicholas Andrew William question with will come from

could just data expand I addition pay now, on to ask if of later you consumer credit to profiles. the wanted buy

for competitors data terms any and specifically. where information your interested of from base that how thing? of breadth in kind and much demand And to your seeing sort size sits BNPL set in that you're sense your for Just of client relative

Sure. Yes.

purchases, partition doing spot have on put TransUnion for activity So Each area, on providers, us we're figuring from is data they and from to order on to will These it's lending to the a credit to BNPL traditional models. note, their small the is as and and line. have ability account file -- consolidated out that about an is are best credit I approach today, need credit it the accumulating trade the need that different would that the they on this. me BNPL clients as bureau be information it to they of emerging an though, consolidated to it. choose credit industry just important to our the report. to be order let a is generally signal fairly activity a mean appear into talk our more if in that and dollar incorporate files. way line in going It's trade

I is way really partnership, our we the accommodate comment relative data feel well size BNPL can't no it. we currently is the fintech, of but will working to is in compete the that and Now like still do on best the industry very versus competitors. that we that I guess we're out say can through what different. accumulating I

clients So traditional signal. have I But to be that repository imagine trade going lines, judicious you data the just into data conventional different without their ready way models that lenders and that because very accumulating be data of size the the it. credit that's is to then into are than attractive to go origination you disrupting think of we our when it, models incorporate can't on can is plug kind and their data incorporate about think and propensity We based like. the models marketing it results, a right? to sound attributes So our the creating

from next with Mazari question Jefferies. Our Hamzah will come

then consumer This portfolio Could on for there? the your Hamzah. consumer. health levered And us mentioned call, to credit bullish prior the times how Mario update you on throughout is guys your commented you just big are obviously, thoughts is on how you made, Cortellacci I you and you the acquisitions guess the to much of X the on the several cycle.

from your what maybe comments comment also but hearing you also what cycle. were, specifically you're credit banks, -- on a from internationally about you customer consumer about think the your I on could customers commented little

Yes.

that and into investments. expansion highly complementary recent mitigation we're adjacencies the The credit fraud say that innovation diversification, the activities. analytic and years, I our correlation capabilities our marketing, we And expansion would into to where just is services, direct but capabilities, to well direct-to-consumer adding diversified outlined, consumer made So also origination considerably because also, just away what in new adding of substantial our recent total the services, you we've from revenues as mix. acquisitions as -- X and enablement continues that's

ago, during downturn, those proportion we're except the a the certainly So resilient TransUnion's revenues, we we last X form total where very been years feel in markets years more were it's of portfolio this and international been and years plus pretty circumstances more significant now, ago, So fast-growing and have all major XX considerably today relative positive. XX right? recent to pandemic, diversified, more diverse than

And on on just comments cycle. internationally the the customer credit

a lending, way the market severe right? calls, are referring with So and consumer Asia. same during America delivered in we've earnings The numbers were The we mean that that difficult health recent I of customer the I the pandemic that had our businesses particular, very Latin commentary experience frankly, the and -- consumer that were Yes. think it's strong positive the India, I'm a time of in a guiding citing, the our outlook. which from right, some that's And reemerging. to, across the our area consistent they their the rebounded most in the guide banks and it's is think I in has had lockdown Philippines internationally. with performance much strong really

in itself. Our reestablished has business direct-to-consumer Kong also Hong

around of globally, lot there's looking a the portfolio really bright So spots.

Rosenbaum Our from Shlomo next Stifel. comes with question

practical, bit anticipated. terms ground Is through powerful on company how being powerful we the Can a being this new and this this a ability than tag a going talk than about talked like OneID about [Indiscernible] you you little more better see faster. potential? specifics you to there you on this product of better data more little level? bit about think we ingest helps the Should just some being platform go commercial how expected, manifesting Chris, initially should in a Can on forward faster cross-sell? innovation? how

Yes. Good question.

to product at and data kind or you do development you faster, market that incorporate speed graphs data speeds helps ability more into the engineering. up, powerful ingest that, that to related cycle, it helps reduces and obviously, elements data So your your the it which get accelerates and can other you all product of fuse to rather it of with

as So we across easier have a source and for to changes meet great just access greater permissible And we many kind uses look a scale the tag a OneID comply based in expanding intelligence to we and its benefit. can compliance centrally the in global there's it Neustar compete. a to that regulatory that the we make quickly will platform and connect a scrutiny will we of regulatory that you ability time see legislative in realm globally. But the addition, on I make and of the has demands and with in if us continuously business. product data which we then like, markets connected which And increasingly core more product Yes. integrate in offering, that over offering lot all of repository the flow of can central out this that as incorporate that to

commercially potential what beforehand. you more seeing You're from saw

of more that of to the with terms innovation the out think should So about we context ability come in now.

TU's, Well, and look, platform. in into the to OneID many TU's cases, I think sources we're superior quickly integrate data going

benefits and that all terms right? that ability platform the identity, the resolve and through will it We I growth of it's course always quick. I of expectations we're platform, to the which best-in-class within oh, much we're and But faster further interrelated I on will than products those were previously. different platform. the push will whether wouldn't OneID our was flow integrate the that quickly products. year, rate, data created to So look, elements think too tell much occur it match of going improve can't raising across is say, improving positive with the data the this over our to very have OneID you of the very in

additional it with an TheStreet that of Neustar. technology the just reason as and of we in the -- think in provided inherent in the Just we feel to the value that confident numbers acquired

back any conference the closing Aaron would to over question-and-answer This concludes remarks. like session. turn to I Hoffman for our

everybody today. to. we'll over joining everyone, it's here. transition as for We're Thanks, day has to of calls up so as to Great. know I sure a need time it busy us make other earnings wrap going to we usual,

your have for hope great Thank So day. you time. a we you

Thank for The now today's you attending conference presentation. has concluded.

now disconnect. may You