TransUnion (TRU) 25 Jul 232023 Q2 Earnings call transcript

Hello, and welcome to the TransUnion 2023 Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would like now to turn the conference over to Aaron Hoffman, Senior Vice President of Investor Relations. ahead. go Please

and everyone, for today. attending Good thank morning, you

are President Cello, and Joining Vice me Executive Cartwright, call the Officer. Financial Todd on Chief Chris Officer; and Chief President Executive and

Investor slides our posted this the morning. earnings and Relations We to this website release call accompany on TransUnion

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

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

With that, to over let me turn Chris. the time

Thanks, morning. add for welcome my let the Aaron. me And call and share this agenda our

and business pools. and to year capability wrap TransUnion's around progress Todd strong guidance. targets. quarter world. of accelerate the detail continued And up I'll markets scale and growth to our along third tap center into Then with an conditions our review strategy, which our macroeconomic talent financial quarter achieve second our quarter discussion revenue the performance. overview Neustar our savings enables with provide discuss of global a results, I'll I'll second And full First, will finally, with and diverse us the I'll also efficiently global short

will with higher to improve our a in to elevated macroeconomic continue are and recession most in finances, levels although combination to-date quarter, the rates gains these This Through the of reduced of pressures conditions the wage markets. and moderating impact face expectations our U.S. have inflation interest unchanged to slightly high levels. most consumers second of although mitigated strain modest employment globally, continue In real for markets household

we we've resilient, and seen U.S., continued tighter remain Consumers standards banks. borrowing. the and from see In increased for caution positive lending demand

the based with strong wage optimistic remain by However, U.S. on for range growth consumers a and demand of modest employment met healthy spending strong and be norms historical to continues lenders. credit real to broad relative increases.

Credit performance and levels. to continued have pre-pandemic within normalize remain of historical metrics and range

increased, standards personal they're unsecured very across loans. comfortable card, auto delinquencies still Although mortgage, and by have historic

credit to Across rising consumer consumers rates the and similar our international U.S. lending conditions remain and health markets. Canada continue largely with be burdening UK, and high persistently the to In portfolio, unchanged. also demand inflation and slowing

Africa volumes our lending Asia-Pacific, of remain strong. India, markets However, and South emerging LatAm in

this cautious of details XXXX. will and of verticals. quarter. point markets the maintain third quarter and for overachieving year of in walk to our the again full full of many later we at our and year we for the Therefore, customers, through despite our each remain guidance guidance will our Like you uncertainties account market about Todd rest second expectations

diluted our Now and for X%. emerging share. guidance services and highlights. adjusted per with financial turning U.S. markets quarter to beat verticals earnings grew adjusted revenue, second EBITDA flat up X% We again

line though in with our in slightly lending. expectations offset Our expectations, vertical mortgage financial but was consumer below performance by modestly performed services better

from first our with quarter. and U.S. the sequentially expectations emerging verticals was also in line improved

the growth in headwinds year in short-term in us are insurance moderating, half verticals. and position the that tenant signs seen and faster which of should screening have we those we for Importantly, faced the employment second

Asia-Pacific, Our currency Canada. India and by XX% growth by International the revenue consecutive in led for double-digits quarter, double-digit growth in segment and grew Africa constant revenue ninth

continue all our our complex in our helping make We and to market is markets, with hard adoption as solutions continue our broad and I'll we conditions. share our Neustar and portfolio customers, solutions. resonating Across forecast outperform innovation. underlying our of platforms integrating gains customer moment, industry-leading strong And economic them progress and markets of navigate a to detail because to see

in emerging the verification market. in in opportunity a U.S. and employees. XX% player financial income of strategy in commercial Truework, support attractive among uses bring quarter, Also customer markets a investment base rapidly the multipronged Truework coverage sophisticated to partnership Truework's to and screening, a we services employment software to our an announced rental minority a help We and broad see provide others. to of solutions unique like orchestration

make continue the additional of half reducing second And the prepayments second we've in debt direct the finally, our we to to quarter, intend cash in year. flow and another free And towards levels. $XX million debt our in prepaid

We have this debt year. million now $XXX prepaid of

Moving result Neustar to fraud delivered across organic growth and Neustar. marketing, a solid communications. performance as X% of

continue fueled on single-digit and revenues attainment accelerating we profit a revenue of our by year, to and expect cost flow-through full high the integration growth For XX% savings. margin,

bookings and line We achieved vertical by joint aligned momentum based sales markets. to have our the sight the revenue of teams on growth by strong

companies remainder year. same growth the numerous the large of begun enhance of have of dollar customers, with will further dozens half we the believe some we on At world. new that year, multimillion the in revenue the of recognizing half. number the largest contracts the meaningful a over of that should We've accelerate second late-stage In time, we renewals in first including signed also contracts growth the

us give this Neustar delivering confidence wins growth these year. for high-single together, in digit Taken

number of marketplace. TruAudience app. that quarter, announced Transfer-less short for the user partnerships launch the annual announced conference, our underpin long-term the Solutions It’s Snowflake’s of the a we in At During Neustar. also confidence Identity further in Marketing prospects and we now Snowflake Resolution

our capabilities consumer their and customers customer sensitive data to sharing shared Together, technology resolution wherever identity customers their we’re improve marketing advanced quality partners and our without collaborate brings partnership data This helping information. with lives.

profiles enrich this that to consumer Snowflake demographics the helps app, outside transferring Marketers disparate online privacy, TruAudience The Native to want without data do and Using from with and Transfer-less and publishers and can they environment. security, support Solutions. the quality App governance. data data connect Identity of offline data

by We of marketing also viewership partnered effectiveness a cross-platform analytics solution VideoAmp’s with for dataset linear and will comprehensive media Marketers into into television accurate VideoAmp the visibility have to TV attribution analytics optimization. release more the measurement and solution. advertising TruAudience integrating their now

beyond enable channels TV. the side Magnite, campaigns our their data marketers decisions. enables increasing measure impact across and of we expanded connected with data-driven world’s And largest company, advertising to to holistic independent marketplace integration better the partnership This TruAudience and TV digital their usage sell

Magnite and reach of Data home. across and TransUnion’s advertisers can brands offers out XX publishers TruAudience channels, now agencies brand media streaming including solutions audiences digital homes. over and that connected digital Marketplace video, U.S. cover audience gaming help audio, million

communication our the continue or suite about our Call grow to of quarter. Trusted the Solutions of on strength TCS, And second TruContact solutions grew XX% in which

resulted identify host rapid adoption that Our verticals. across of have applications customer new teams a continue to in

the Let two progress markets. recent me some in of detail end

and telehealth phone at prescription reminders. healthcare the necessary including pre-appointment sector payment calls, made inroads appointments, pickups, of notices care, of steps we’ve appointment phone many the into where test insurance booking can calls results, First, or reminders, effectiveness enhance TCS authorizations,

members. the TruLookup A their training, public Departments essential help improve weeks to opportunities Veteran effectively other support and see to Second, we of job deliver sector. Affairs Connect ago, housing, in and State few we Veterans launched outreach healthcare,

Veterans In and TruContact logo, and Department Affairs the is this case, Branded mobile adds call the Display to call. context that verifies reason the including call name, display of the Call inbound for brand coming from location,

has supercharged ongoing by the Last transformation, technology which quarter, I Neustar been and discussed our data acquisition.

want a in locations. they’re Global our GCCs highlight has This work Centers talent Capability lower to GCCs I a and cost in years of Investment recent and or allowed truly standardize quarter, us in and into centralize global enabling high important transformation our to our variety how organization.

to are India, Africa zones. to our We and in GCCs in the across last Costa and solutions GCC launched newest employees our high across sun delivering than first approach Rica. time over our location using grown we’ve a years, Today, quality X,XXX coverage follow five South services more the customers XXXX,

Local functions creates support GCC energies solutions our software our and and functions business into analytics, efficiencies ideas Concentrating associates processes. and knowledge development, and new data scale and and operations inject practices. consolidates science and best

language market to skills the in And will received grow support, local critical the as expertise, numerous share our GCCs. believe real-time their region reflecting regional we be customers. we work strong rewards and outstanding of We’ve GCCs, our supporting our the surrounding

by global path top and services high distributed of in months, our margin NASSCOM, a to in This in the leadership network Management future, reflects come. recognition caliber in talent to the work as in India our for business Association we’ve work the certification GCC a Indian was to they’ve the India the its named India. recognized growth another diverse the as We and improved Everest put Africa. year stellar GCC place places Business include South IT strong top see in model assembled. as employer attractive two by for last operational expansion And performance Process These great the employer and also Group and

successful up market quarter and performance, progress, Now conditions, GCC integrating our second comments our that wraps on Neustar my strategy.

third on details quarter quarter financial full provide year will XXXX and you Todd our and Now results our further outlook. second with

Todd. to Over you,

with consolidated let Thanks, results. I’ll financial me Chris, add my to everyone. start our and welcome off

no increased the quarter organic lap constant was There and as consolidated X% impact currency of Argus on an revenue basis. from acquisitions last reported quarter. Second we X% purchase on a

a was exchange Foreign X% headwind.

X% quarter and basis. both currency declined from grew second on of basis on an reported X% business EBITDA a mortgage XXXX. constant XXXX Our Adjusted excluding organic the

XXXX. Our points the adjusted compared most challenging which XXX to almost basis ago sequentially to had improved comparison quarter, margins second XX.X% for year EBITDA the down

share as higher expense. lower Second quarter adjusted EBITDA declined per diluted earnings a interest of and result adjusted XX%

will are reporting Before the I vertical results, XXXX. we we a standalone revenue market Markets our providing into reminder that end structure and Neustar reporting U.S. of get Neustar at discontinue within

Markets segment Adjusted up at adjusted was margin EBITDA for X% ago EBITDA U.S. second XX.X%. looking flat. Financial year quarter. to quarter, for X% compared the Now and financial U.S. Markets was performance the services declined revenue revenue was

in After to consumer, response markets. year a in remain active against low-double funding. growth digits end with and the back, market Consumer individual access late stabilized declined the potentially revenue to lending participants quarter. fintechs high-XX% to Turning weakening year a have reasonable last ago pulling rate

continued in market. Pay to Buy Now strength the also We Later see

was on growth outreach, the remain business Issuers originate a teens marketing card mid-single-digits selective high quarter. healthy credit level. against but prior Our at year a down rate to continue in

larger from We our also marketing. are firms benefiting digital relationships with utilizing that are aggressively

marketing Neustar in and call low-single-digit gains, the pre-qualification of quarter the business the growth of delivered strong on strength share pricing, auto cross-selling, solutions. volumes, center Our impact continued

improving seeing are somewhat vehicle new We vehicles weakness by in continued used the market. offset supply of

mortgage, For year market point, despite the volume XX%. with high revenue remain remained was falling strong started to prices home and this XX% volumes mortgages. HELOC is inquiry activity. ago rate and existing comparisons volumes leave reluctant but in ease while quarter, refinancing offset up pricing declines by Absolute weak, almost is to At low stagnated as non-existent are the activity purchase homeowners about

about revenue. basis, of On represented a mortgage XX-month TransUnion trailing total X.X%

XXXX, now our roughly to be and the For increase inquiry we roughly to XX%. revenue expect market XX% down

Let our the good another in me delivered grew to quarter. which X% Insurance verticals, turn now emerging quarter.

to shopping approval drive we in consumers, beginning and those Importantly, carriers to are increased rate which continue prices receive to increases pass believe we a activity. recovery for will seeing

At yet this to new and their oriented substantially to largely activity campaigns point, marketing drive personalized brand have applications. marketing reactivate have to insurers limited

like TruVision auto, and and We successful history, like innovations of and also life business from in Sontiq adoption continue new markets driving newer growth cross-selling commercial Neustar of to wins, our benefit solutions.

Tenant tough a screening was comps market. employment against down softening employment and and

with declines signs a move an rental month as the continue rental in increases in increasing market new we in However, rates, to recovery units of supply of rates, construction tenant comes and see over month online.

grew result the TransUnion as continued combination Chris Neustar wins driven Our of media by business of in and the a as described. quarter vertical Solutions

XX.X%, in growth focused of wins Trusted customer XX retail services up particularly interactive strength we points declined about spending. collections of and and EBITDA Adjusted continue tech, on revenue X%. result the Finally, advertising basis more of Solutions suite. and as good see were to e-commerce, margins a Consumer Call our

as decline to our consumers. on approach continues focus higher value business recalibrate direct we Our to marketing

some as as view of our at well Thus of as attractive platform, improvement on the better expected quarter In paid new returns our grew TruEmpower, tactics with in monitoring. strength stats financial customer with revamp accounts credit far, on the good a acquire. we’ve business second modest wins, services with the business, we using formerly acquisition offer partners particularly known our seen than cost that indirect

in growth all will For my constant be comments international, comparisons revenue about currency.

by segment, our Adjusted EBITDA revenue investments a points digits. total basis about strategic XX.X%, the grew reported with of as of four growing For six was double markets XXX across regions. XX% down margin our result

for the of strength as generally let’s meaningful specifics international market, We XX% largest diversity market real both in into trends our India. each credit region. dig and reflecting India, remains a direct-to-consumer Now saw commercial markets, and we In strong The as healthy consumers. consumer portfolio offerings. and growth in grew fraud well from our

we every to We growth. XX% year year impact another India deliver business XXXX. exception COVID grown And over over since expect of the XX% XXXX, of with have this

a contracts, about one-time despite In the including the grown macro revenue environment. X% declined we related in UK with to excluding government, quarter would’ve the challenging the UK, X%, revenue

softened, active has lenders we to While demand as banks lending our market large struggled. time, for solutions markets see risk. even staying performance good to credit portfolio fintech The affordability have have same seen we to assess help and satisfy trended the continue

quarter. Canadian in the grew Our business XX% second

recovery we in financial relatively share activity. execution a have services and fintech insurance growth in casualty underwriting market remains the well through flat, strong the While as and shifts property generated of as

majority was our quarter revenue across largest of quarter in with market. weakness down growth the as growth America, in was some Colombia. markets, the the Brazil Latin another up including In seen of fintech market broad-based we’ve X% double-digit for our

our America, macro with conditions services, Latin business and government particularly across insurance, to banks, continue new win neo softened financial teams in have and While fintech’s telcos.

adoption solutions. to and see of strong our credit, continue also We trended TruVision fraud

Kong in Philippines, continue Pacific, where In the Asia add new business. offerings performance Hong good win we from we grew new XX% continued and and to

business and conditions a South business growth of Rwanda. in strength Outside Africa broadly continued across like markets telco our portfolio environment was wins. gaming. was Africa, continue Zambia by growth macroeconomic we very the XX% driven and and markets. revenue solid banking by Africa, several strong challenging in increased This growing like fast verticals augmented of In region, Kenya, South on see largest strong despite new in performance Finally, market social to growth the and and core

that We We finished with pre-paying of left roughly ended balance billion after ratio with $XX $X.X $XXX million of the the leverage us on quarter with cash another quarter debt a in X.Xx. the sheet. million quarter of the

debt year. $XXX million and debt prepaid of XXXX the point of to now second intend at the this have continue We in we to in prepay half additional

of not have any in Looking bolt-on to back, are of large plans billion debt. And and pursue announced acquisition comment, our we’ve since acquisitions intention at we time, the no smaller previous September XXXX, acquisitions this to $X.X about this we even in reiterate our of year. scale Neustar prepaid

and Argus. and integrating on Neustar, focused Sontiq of are growth We maximizing the potential

in FX quarter, That to to brings adjusted be to In significant expect us third for outlook third the and quarter. EBITDA. our the we revenue

or as currency X% revenue between on to to constant organic in reported and $XXX million come X% an $XXX up expect and million We basis.

includes expect X.X to our revenue remainder tailwind from X.X% approximately Our be on mortgage, meaning the up an we organic currency points X.X% of of constant business basis. will guidance that

We million, expect an X% $XXX to between increase adjusted $XXX EBITDA and to X%. be of million

points points. margin EBITDA basis We up be expect XXX basis to XX adjusted to

earnings down and between share X% per diluted $X.XX adjusted We expect X%. a range $X.XX, of also to up be to

unchanged. Most the to year. our Turning remains guidance full of largely

from expect X and We of impact we from M&A. on expect less adjusted than point about point revenue and FX X headwind of EBITDA,

X% basis or up and and an organic mortgage. to between excluding $X.XXX revenue X% X% and of as on the impact X% currency in $X.XXX expect We constant billion to up reported billion to come

segments, revenue our our growth unchanged. For remains business outlook organic also

to We expect and the grow mortgage. of U.S. impact up markets excluding low-single-digits mortgage. to mid-single-digits, services We without but financial down low-single-digits anticipate low-single-digits be

them lending, guidance for is have the consumer for expectations modestly mortgage. overall but While we services reduce our financial increased unchanged, for

to emerging expect verticals mid-single-digits. be We up

can turns guidance. currency to we ongoing international constant diversified our You that grow portfolio markets, us full low-single-digits. consumer our by will to in driven We continue revenue allowing playing in the emerging expect maintain to of strength benefits anticipate and low-double-digits interactive out, year see decline

to outlook. back total Turning company

the of to margin EBITDA lower X%, in quarter X% also adjusted margins flat some unchanged. the to and to up adjusted That in billion be mix $X.XXX first revenue expect up with of being Argus’ would result We partially cost between billion points and basis benefits $X.XXX EBITDA significant XX by inclusion the considerations. Neustar the offset relatively savings

continue declining our growth, expense step adjusted XX%. to approximately share and tax increase EBITDA we in net approximately adjusted anticipate $XXX expense expected of adjusted come portion interest in subsequent being to SOFR expenditures control and excluding expect We be And and $XXX will about from higher up million in be amortization X% million are the the of interest with Depreciation an X% by we benefits and the expect million. change prepayment debt full offset XXXX earnings year capital is be about amortization about $XXX flat to acquisitions our curve. forward rate offsetting as per the diluted at be to expect for revenue. to We we to anticipate

call some for final to I’ll Chris back comments. turn now the

revenue, wrap Thank up, good To we another you, and for Todd. adjusted adjusted quarter EPS. had our beating EBITDA guidance

the meaningful business combination. prudently the level progress at We’re the of time make the from full Neustar continue integrating wins market, same and our we given delivering uncertainty holding year in to guidance

With that, I’ll turn it back to Aaron.

remarks. concludes our Chris. That Thanks, prepared

each as only that question can that participants. more we ask you we always, include the one For so Q&A, ask

And so Q&A. now begin the can operator, we

Jeff [Operator Go comes session. ahead. Baird. question-and-answer Instructions] Meuler the from first We with Our will now begin question

you. Thank Yes. you. Thank

revenue flowing better maintaining just to QX, prudence it’s macro, getting seeing in from in extra offset know you conservatism through just not you. your and that lower in slightly quarter, U.S. QX? inquiries guidance. So you’re Is it in that’s said still I customers the else unchanged I signals see Or a and prudence? the and of in showing mortgage is maybe early tough you’re or there terms you in the later guidance. the totally that uncertain and pullback activity I your the of but or business said anything kind is guess, respect a any the Thank improved.

a take probably I’ll Jeff. This very this place start question and Good for to Todd. morning. is morning, that us appropriate

did in EPS and expectations adjusted did revenue, particularly in across we and remain QX developed that and we the adjusted the in continue some of U.S. feel the to QX raise in, So reason beat we And operate EBITDA not economic for yes, is that conditions, that the diluted uncertain. and markets the guide. we

smaller reduced forecast as all updated close you the this, intents go a we that point call how our about back that to because the our guide consumer to for gave And shift we the our think for and for if increased we significantly the time results lending April and saw similar our at QX mix when purposes. to space. in assumption we a But year year amounts mortgage more we players towards and

March, primarily Bank consumer what aftermath at and We space failures. to the in that period. just the a the saw it and was Silicon early time was in the were in Valley of lending cautiousness April late a slowdown Signature And seeing response we

reverse, we direct close long X’s. XX ago, the quarter saw I yield, in where still a almost second that had saw is particular mortgage happened that we that mortgage dynamics up not rates to we interest in the upper articulated in forecasted on rates the which rates tick on in saw X% impact just we year what those essence So

to done assumption as we’ve this tick were So result lending went they in got is volumes the more more as mortgage comfortable of consumer with lending environment our of operating consumer our a we’ve and and see guide the taken conversely up. second in, and type that quarter on we the customers started down what that

case So again, of a kind there. similar offsetting

the are when because and see we’re guide best example puts important give year takes and just that’s you that maintain, there full the at business and we that’s can think look probably I I that the you. So in seeing you

guide to again, and to needless on being half The thing is rates we pleased the of to to the when in growth question of I really going half But would – the to the like at with focused of the stability – is developed markets. of you gets really second are point it say year. look our strong. have half. second is, that your been the though is de-risk customers, now, of year, is say second what we we’re we’re And more said, for half feel We our a the de-risking first the and the year. expectations outperform able good the deliver feel in we’re And seeing a right that really

a think U.S. a continues of services business in in And like Canada markets the financial digits. that’s pressured. as the even So the little international bit to well little grow as double in more bit strongly and UK, maybe

the us what conviction gives half. in the that’s second So

Thank it. you. Got

of next Zhu Go comes Kelsey from ahead. Our question Autonomous.

morning. my I’m excited your Truework. taking strategic partnership for Good Thanks with very about question.

can of for more of manual database screening there. the these wondering share little Just about and like you trying Experian bit looks also with to in the revenue with customer little lenders? are as if usually a breakdown bit size at space, background you’re Truework’s of Truework. downstream in-house competing this what And kind I the with a competing more your whether verification us mortgage, strategy some and to was well between expand as processes you Thanks. Equifax companies mortgage understand better about or

Okay, Kelsey, thank question. with And excited we’re our you about the for Truework’s. again, partnership

continued players space and big employment number us. I verified market is investment hungry our for context the to in for market starts seized satisfy the any reflects of can that for income number Truework And attractive alternatives But work going we’re the is to of way and work it’s product and think a standard efforts competitive one revenues. continue revenues. adjacent into think that in that the and I market setting we’re a this scale scale find our and We right marketplace. find the think needs the with to of just to the opportunity solutions discussion and this our client

allows and about is, very What interface Truework forward through mechanisms rapidly foot player variety customers growing with and easy and have user need we kind to from that’s processors, fulfill be they they’re which of space approaches payroll They relationships sophisticated technologically. emerging the income, or could a of and access but are like major orchestration in into tapping a and very that that has is the to critical their database mass employment software workflow of beyond also with very well streamlined corporations.

But they within the consumer the also lifecycle. upload support embedded origination telephonic workflow, a permissioned loan traditional access document workflow, account can

investment. MSAs, side they kind relationships is functionality the broad provide have data and with scale distribution can fulfillment certainly assets a very across demand the So of We attractive range that think umbrella this that methods of particularly attractive. we help

of And then reinforces our better solution scale. find the and us more ongoing intent to for space kind of some probably our to just in the this those to CEO. I Truework’s efforts compete strategic are to your and help think right But this detailed penetrate questions,

for Thanks that.

ahead. Our Bank. from Faiza Deutsche Go next question of comes Alwy

accelerated fintech And to customers. the from just market commentary seem to seems, Good your just I go it maybe get seeing the from have marketing credit revenues perspective on to wanted the again. to hi. And that wanted on equation. what back morning. of credit side your you're Yes,

around in seeing to So sort portfolio would customers that and marketing some sort and takes broadly puts fintech from on your love versus get particular? what of monitoring, you're perspective the of

conditions are had to originating stability than previously. they're were happy from they in loans, on albeit still and where resilience between more activity unchanged reduced but quarters. lot They the trading for and prior certainly selective a We that. largely of say their fintechs level, lower sector. Yes, see really the accelerated, focus a at I'd the Okay. years are growth

more shift overall seen marketing consumer we've the distinct reduced toward to a acquisition acquisition don't and fintechs more There I right. and activity. the caution there's customer or think has either lending which sensitivity broad, and is in risk, in frankly, marketing

still And of pretty a because are long again, again, appetite important loans demand. there's level said, is remains I to think provide healthy. a consumer And That ample as the fulfill to the find certainly it's market activity. the for some case, as good lending going way consumer context. There that's that to

in half in the lending was fintechs first the XXXX, year, While of in the in booming. consumer general

to year. with saw second view half have for diminish something outlook remainder said, the of up that as she in of that and We for we not business over last still about. fintechs of the kind year, three still the And goes, steady the XX% this as excited But that be the years. about, is we concerned

Thank you.

Our next question comes from Andrew Steinerman with ahead. JPMorgan. Go

Hi.

tell is bookings, there Neustar. us usage? a more little the strong renewals what's And TransUnion? X, joint roadmap product be yet Could back a and driving Slide just Neustar to specific and Going you between and

Happy elaborate that. Yes. to on

to we've single-digits of in accelerated third product First to guide. the the across growth each had looking reach quarter areas communications, fourth of say, areas, high we all, those year of marketing, full the three would I and risk in are strong and and growth the

strong As I in we with said my commentary, renewals big had customers.

We last are the ramping wins from revenues year. customer big

We well. sell continue to

guide. indicators that integrated single-digit executing a development And in there's yes, Neustar meaningful product ways. lot absolutely that our our on high cross-sell we in so on and give us very confidence And of are positive

multiple and OneID developed, acquisition, have to management technology. and I roll platform markets. talked TransUnion We've it. firmly of rebranded concept calls, Neustar's integrated the can about platform think, becoming benefits adopted geographies extensively analytics I've they that out. proven In that which for and the multiple data across do as we prior The We'll we OneTRU that continue the is and

So is going yes, on the integration multiple levels. well

year, we integrated they're improvement. sales and are and line first very seeing the cross-selling knowledge is of comfortable the side, selling forces and increasing, the the their on think we I product their and increasing, in comfort broader is

of and more under Now lot a work clearly do upside to there.

hard. But product push we do lines So companies. product development between integrated multigenerational two their plans to or continue each product to the we're going of in have

you, Chris. Thank

next Our Morgan Kaplan from ahead. with comes question Toni Stanley. Go

one sort of much. question maybe and so to Wanted Thanks verification. Truework on ask more the

do historically, newer strategy. going I had this head-to-head the now? of where for with part your you you to this of business, ultimately, like So to try sort and smaller in because being had see that of compete strategy you? niche know Is sort Equifax of really

So and I are you strategy Truework that there? is your guess, new differentiators real what And for where see combination? the the Thanks.

a acknowledge strong all has Yes, that space. have We in Equifax sure. Again, understand I business the very to look, that.

I – in space competitors market support different their in the the However, will niches. think think I multiple

so strong to for penetrate you you're on looking like when this, and entrenched the And opportunity take market. competitor a an

I for variety alternatives hungry a The market, factors. competitive for is of think,

healthy, business think demonstrated that be proposition a it's that. to the partnership it's can consumers. that for that good significantly scaling has to us additive they And value and Truework market I sell, I think think I for distribution going is the that they are have with the

meaningful distribution that we on variety this growing working increasing beachhead they’ve can adding a to grow established, from deeper and ways of to and more not we’re clients, going et products in the So it really the to just we’re change. into to fight rails continue fight they ride penetration our into strategic there’s TransUnion cetera. so and our And can a records

Thank you.

Nicholas next comes Our go with William from Andrew ahead. Please Blair. question

multi-part you here question Neustar question. for to if you circle taking back Hi, maybe my good I a wanted to morning. Thank will.

double-digit the that’s kind you was and the is then to X% extent expecting the essentially do growth. what need just were you. deal there? target quarter. to if what there. second the second the I the get announced you part for of is growth I’m wondering when And macro know target to a on you just supportive to medium-term outlook growth first Thank get still eventually The

X% of the the in Well, of bookings for growth We of year. on in over the strength expect second is over get Yes. course Neustar implementations. And Neustar the the by implementations revenues the and And was is bookings XXXX. from on digits right quarter in for and Neustar XXXX, the the planned. out playing based the end that course as total plan. accelerating the the ramping high-single plan XXXX still The of to

of Now yes, expectation the when That again, is business in the certainly first back revenue organic this more in we after are be business advertising for of our the digit the over the marketing of overall low-double for facing guide, guidance, range than challenging executing still guidance. a that years But to we spend longer-term. indeed, did and conditions of we expect acquisition. potential to the economically, initial provided but couple terms

the in high-single now, So really foreseeable we’re sustaining that on right and future. focused achieving digit

the I is is performed would be to that that Chris, I this the add expected Markets that is think the understand the to business Neustar second important And point just to has that, first in to underscore our our in And fastest just on business grower point through expectations half. that XXXX. U.S.

X% QX, X% So up growth up it digit. gets growth fully to we Chris said, rates. put just expect on the deliver in QX. We the the to on in high-single question

math far as You the gets as digits there. high-single do how can

have We should what higher the QX, seen. and in rate you’ve at visibility be a than it QX, good

too good to are Those XXXX. for early guide adds and Yes.

We’re still XXXX. focused on hitting

and the other as right of continues that those guess going long-term revenue we we’re costs the margin out I Neustar progress take well. for The grow add as and target to objectives business, is savings integration toward on we program

you, Great. both. Thank

Ashish question from Our Markets. RBC Capital of comes go next Please ahead. Sabadra

sequential and math but EBITDA if I year-on-year sequentially a EBITDA if Thanks as question. you for improvement. the taking is margins, about to off I the margin Are we both the that guidance focus significant things how which around there think wondering one-time fourth margin. wanted about is XQ that The expansion, quarter drivers jump right And for talk my was should implies the implies point are we XXXX? or the could improvement. into on implied XX%, another get improvement Thanks.

Ashish, thanks for the question.

And outlook end second let’s we our expecting so more we is adjusted our guidance to revenue there the guidance, in perspective range, obviously from that from right? you a at look you the start as high maintaining half. are the the of put far as that out look if think with for incrementally arrive our dollars at I is EBITDA say, guide concerned, if So place revenue just to appropriate

big is factor that. a Seasonality of

historical on QX in basis a typically TransUnion’s So is non-pandemic normal revenue of highest quarters a one times.

incremental are So the our drive a flow a we that that into to from amount can guide that’s through perspective that dollars of in assumed – there’s going revenue see and margin. you EBITDA nice adjusted

meaningful second for provide that and a synergies build in us would question very previous to I alluded thing to continue The that the Chris say the is that benefit. cost they Neustar just

managed for And pulled be response we prudently in critical been looked we of the coming out in definitely entertainment uncertainty for about operating other face we’ve most that’ll that, in business, on well. a as about that be question pull travel one-time back and to plus first of the hires, the year on run to spend that focused organization last to the just over got the us talking And and back So rate. only has driver to expense our we’ve our the expenses. able –

are as of all well. effect forces So those in also

little I final think if and this provides remarks provide meaningful And a the benefit opening it Centers bit covered TransUnion. quarter. make update to Chris’ would and more then point was is, felt we we why that a where the you That’s detail very Capability Global appropriate to about

as So well that’s another us definitely driver too. for

on big of that And and the centers years And we’ve on. five structurally past think a the been it our we for march now. part also capability why to has out making spot on put I that’s Yes. this building a that all I but think that’s profitable. just And centralizing been company, more point, amplify operations globalizing last spotlight global

– opportunity. I we think And there’s more

it. there We’re of the advantage take going stay to course and full

Project the some there’s become way think will opportunity standardization that and continue stack well. side, as the also on through further produce cloud our an migration tech more technology there efficient create Rise efficiencies opportunity considerable us as for time and then to the we structurally to and further with We to consolidate the along

strategic they to to on multi-year many commitment of investing Todd been we’ve talked before here acquisitions, a path So for investors. we’re but in were a about, that’s get backdrop our that years. And near-term the combination where the the that things also margins it’s our back to

you. Thank Thanks. Thanks. great. That’s

comes ahead. Our Andrew of Jeffrey question Truist from Go next Securities.

the Trusted question. Call taking where you contracts? pricing coming Solutions from thanks can the Are of what from whom talk sort characteristics and of Hi, for business, those your those wondering about solutions? part I’m are of wins share Chris, are they taking specifically, internal you in the are from? So coming

would on some that. is let the mean, to I Call Trusted today. Neustar success. I Okay, been shed dollars, well, relatively to Solutions from the light considerable taken say past And it four me over What already but the a that, more new solution think is where or five is we’ve And specific guided on zero a years I has it market. it’s

us This brought So players. don’t that scaling. think of that share taking established this from is an as they to market innovation we’re

and that core to had all Neustar And again, And the strategic Solutions product for mitigation. Neustar of effectiveness, goes thus on success having Argus out we its selling knock that’s unique view way also vertical that And as it’s has major that info. come a intelligence of risk Trusted sell a combination. based cross TransUnion We’re across We Call it’s the there’s always think upside. both our broad and been far, marketing it lot of is back easiest which us, markets, frankly. all at wood here, it’s this phone straddles a push – the but growth

our So to a we it investing business we case are perspective, since on nice positive scaling revenue and bought been, has further and the from focused and accelerating M&A it. a

I appreciate that. Thank you.

comes Balsky of Bank go of question Please from Our next America. ahead. Heather

the to and the the you is and the yet, are marketing for as for think curious progresses? how do trends the thank just question. marketing you business taking started happens the improvement of think about was to hasn’t the ramp my year. of Thanks. Hi, insurance year you Shopping what rest in I with improving, about kind what quarter you saw hearing,

Yes.

second Heather. are those think rate I what that in insurance half. the accelerate the expect about And in some insights, growth I’ll we insurance fair to say

year, P&C insurance that we’re costs of the just the I’ll second seen at grinding the between last fourth and We’re in mismatch some because of a halt to came to the activity client acquisition muted, activity, for we’ve third happy quarter carriers. a extent remind already and pricing even improvement the that repair marketing quite because and you quarter quarter. lesser replacement

price increases states. As various carriers we the the you good making from updated last call, are getting in progress

again we’re work but they I with do, say to bit confidence. more can still think, initiate point business approaching there’s new they a more where and that a

on they’ve I’d it to or helped acceleration level frothiness that, remains the improving had trends seen. with takes so the how be an well. back get But through it same Whether goes the And their it activities. some to of long our to increases expect which put point, on marketing customers, that given to as price has behavior, to material in that shopping there’s numbers

year. some So too. in of half the And guide nice second XXXX in going we’re over that reasonable got to for pretty the we’ve confidence accelerate a us hopefully, insurance that’ll up set

now earnings know to Thanks, hour, of respectful be a at of the we’re of time that the in bottom given is the on Great. busy space. Chris. day want we And everyone’s we what

course but you the we forward close and the thank joining call, with best. for us We’re the going to very to today, much quarter. down everyone of All look the you speaking over

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

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