TransUnion (TRU) 24 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to TransUnion's 2023 Third 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. Please go ahead.

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

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

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

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

me With to all that, turn Chris. let over it

Thanks, Aaron.

Let call our me this share add the my agenda morning. for welcome and

our managing a uncertain up and savings making progress and targets. we're growth to of business First, quarter I'll macro I'll continued third wrap our quarter. that the in through about a discussion discuss also with an our on the with I'll macroeconomic achieving had third overview challenging environment. Neustar, conditions revenue I'll we're impact facing accelerating and more financial they the review short Then the approach performance. provide

in results, Finally, across notably conditions Todd full third will U.S. guidance. TransUnion year our quarter and Economic and quarter, U.K. several markets softened most quarter the the the along with in fourth third our detail

inflation lingering wage consumers largely accumulated costs taken unemployment have from finances. and a and spent have modest household excess consumers toll and growth, U.S. low the continue to slowed benefit on savings rising through While real borrowing has COVID. during Spending

costs, capital supports credit Although due increasing have commentary strong demand have from constraints. and to tiers. despite lending, tightened observations, standards credit Recent consumer appeared weakening banks noting that finances especially lenders for the lending consumer these across in cracks lower remains elevated

cautiously Now a optimistic as while uncertainty. in the after first guidance economic ongoing quarter cushion the TransUnion third X our exceeding entered full year against maintaining quarters, guidance

in causing low our year-over-year in U.S. and and softened to revenues However, come under the July our third lending U.S. slightly end U.K. the in grew X% quarter, Financial volumes over of revenue Services, progressively increasing the In a but only August, basis in spiked treasury points Rising in impact after year. points first as the in XX-year quarter negative basis of September. half X% rates the XX the in declined X% rate had the XX guidance.

focused acquire loan in in consumer in combined slowdown decrease vertical, a and marketing primarily a experienced on carriers where standards and which tighter with new audience credit fueled campaign volumes. increasing demand, similar insurance reduced affected our marketing We profitability customers. have our The management activity remain to negatively also pullback

often increased in transaction revenue nonstandard per acquired typically utilize carriers, rates while by realizes partially suite. our Insurance full And renewal revenue as unprofitable smaller and do from policy carriers in TU less and July, large September. in only policy not smaller August, product usually is Increasing geographies the decline X% carriers volumes. but marketing offsets declined grew X% in fueling exiting shopping, X% consumer attrition is which carriers

EBITDA weighed dollars and profits on adjusted and high Financial a have their our volumes Services has insurance margin. to and flow-through softening

as Canada. Other the segment India U.K., Asia market in portfolio, such and continues in Pacific segment were over although and outperformance of benefit and double revenues up conditions strong low America economic the total International digits. to Latin Africa in slowed Our the healthy quarter, from parts

revenues the Emerging with U.S. Services grew in markets high quarter, In markets. in third Verticals International, grew Neustar driven several emerging and and Financial single-digit X% growth TransUnion U.S. up flat due Neustar. organically by X% in X% revenue total verticals to within strength

E-commerce. strong Financial digits high Our from overall, in as bookings media and remained sector Retail and Services, portfolio including grew to single media, in insurance and Tech, continue public double diversification our and benefit within and we digits we

led All growth grew XX% India investment. constant areas International in our and of digits. Revenue double have XX% double-digit revenues consecutive and currency quarter in segment grew Canada September revenue while the XXth inorganic recent by also with in growth. organic for APAC

We because million, and expansion we into expect solution of another new the to million gains innovation, quarter, continue our and the months outperform total of prepaid to We for fourth make first debt the $XXX quarter. share our bringing prepayments adjacencies. during X in underlying further $XX markets to

challenging Neustar revenue macroeconomic conditions. core be We're CFPB wrongdoing. proving help verticals, is of to in the accretive reach resolved rates and work to with market matters FTC our the important to X% in providing and delivered nicely to U.S. with growth with matters their our services no legal business X our these settled the also to headwinds goals. pleased increased proceed and of consumers even have We in quarter growth despite these admission

and continued their in revenues Solutions subscriptions Risk strong the growth, While Marketing Neustar's in transactional softened and quarter. bookings

we're volumes full of our high and line year result, with mid-single fourth growth digits. growth instead in single digits in lowering a quarter assumptions our September reducing to guide As

XXXX integration as We also synergies. our achieve up a around cost target expect EBITDA complete points margin, XX% and basis XXX we over

support we in confidence brand. deal well quarter, prospects. identity substantial company a marketing, our major new Neustar's large announced growth large a In with multiyear personal as further a number apparel CPG signed we business of a that company partnerships in a with new care the in as Now

or from to customers Entity Web of improve within TruAudience Solutions secure We XX% customer Call announced quarter to cloud insights TruContact their identity capabilities and Trusted the on AWS from will through audience of hygiene environment. brings Marketing our -- Services. a grow line data Resolution of about also of Amazon that AWS' continue product Solutions verticals. TCS, in to our identity strength which third AWS across advanced the its with grew trusted business Communications Solutions integrate range suite resolution

We of robocalls place recently to U.S. call Branded TCS expanded engage users and prospects. our suite. branded relationship with in purpose become our provider exclusive the the with to on brand securely for of one of outbound major allows solution anonymous the fog cut and and carriers Calling to their clients wireless through their calls calling, part X

federal branded call multiyear a to dollar provide a large government We agency with multimillion won display. also

costs. growth interest TCS answer verticals as across enjoying clients solutions We're strong our in improved and and reduce value rates brought our

wrap cycle. through credit, helping market Now and address I current marketing We're the call approach on conditions part insight-led approach. up by consultative their value our want of challenges and focused long-term lending reinforcing to may our our creating to our my as fraud macroeconomic even solutions market shareholder customers complementary applying by

their alternative standards, our analytics volumes tools lending modeling tightening segments for With data lenders and declining growth. help attractive delinquencies, will and loan and credit find portfolios maximize and rich powerful and rising trended

important challenging their optimize spending more enable and even ensure which conditions. marketing solutions customers Our in positive is outcomes, to

likely to audience how messages analytics and which will reach identity most Our segmentation what resonate. predictive and help understand them clients customers resolution, best to contact,

more and utilizing consumers that help rich conversion with are also possible data of mitigation the Call the efficiently of solutions minimize fraud our Trusted results investment. spending Planning losses. our the reach by clients best marketing their history achieved measuring least pipeline effectiveness fraud And ensures and and

launching position us modernizing These next-generation products operations We mitigation thriving continue to structurally international will platform TransUnion, objectives invest TransUnion. from include for key best and our refining that structure our Neustar initiatives fraud our and of reducing and of our in new organization growth global combining our standardizing our capability and scaling chapter next core across and the technologies for strategic and the innovations our our footprint remains scaling centers, by cost profitability. and

initiatives, operating of costs we of can series many been materially. now, we for progress which further the have believe reduce some Through time in

environment challenging we we and accelerating efforts additional appropriate. more details find when are which the Given we'll share in growth ourselves, these

integrations cost our interest debt. our laser-focused acquisition We also reducing remain our from on through of savings prepayment achieving expense the and

comments our approach through my now and quarter results provide details further our our performance our managing outlook. Todd. and financial softer quarter and conditions, morning concludes to our third market on Todd quarter XXXX full will Over That third you, this conditions. on these to fourth year our market

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

and revenue impact. quarter impact X% immaterial Third on currency acquisitions There constant increased a FX and no consolidated reported from was basis.

on X% recent third constant legal above result the the grew X% we reserved. a mortgage XXXX X% on impacted and incremental and XXXX. organic excluding basis million negatively both business $X EBITDA basis, currency. amount constant by Adjusted for increased the previously charge Our currency quarter of an reported This was settlements in an from

also account reversal accruals EBITDA from for the full and view variable our for cash benefited to adjusted year. compensation for We of a of revenue current

points to of basis the EBITDA Our second up year XXX XX third sequentially and quarter compared the quarter from adjusted margin points XX.X%, XXXX. was basis ago improved by

as diluted adjusted a higher declined interest quarter X% result EPS Third of expense.

adjusted an like impairment and business This took quarter. with TruVision array product margin successful over our a an U.K. for TruEmpower an in to we million attractive TransUnion business EBITDA offerings a portfolio, the market diversified Finally, $XXX and remains during highly XX%. of

share Leveraging under our delivered meaningful ownership. gained we've across market-leading the innovation, ecosystem our growth and lending

has harsh faced pressures has rates which and confluence lending of in slowed soaring U.K. resulting events unusually the underlying interest the inflationary growth. an However, macro

reminder discontinue U.S. at of structure a end into get stand-alone that our the reporting Neustar and I Neustar markets Before Vertical will we we reporting within results, market XXXX. are providing revenue

third in become EBITDA on margin have segment growth X% volumes the demand flat weighed revenue at services Consumer the at continues compared and and be high X% declined financial healthy adjusted was flat. that XXXX. U.S. quarter. revenue performance remain a have was of loans quarter. marketing year lending for the remains Rising personal consumers. third for With revenues funding EBITDA markets unsecured X% single-digit selective. product looking ago highly depressed. to to consumer capital Financial to mainstream Absolute Adjusted as activity said, XX.X%. Now compared quarter up lending U.S. rates markets for were increased

with marketing year digit quarter, mid-teens. was credit Our low down in card down X% the compared business double ago to growth

continue with historical healthy Issuers moderating a rising to like basis. by card for delinquencies consumer marketing With that levels spend. lending, react activity to on remain said,

and strength growth strong center delivered the Our marketing auto of impact the quarter in gains, pricing, cross-selling Neustar business solutions. call continued share of on volumes, the X% prequalification

used and challenges new We are the seeing vehicles, vehicle strong continued demand around by somewhat weakness offset for market in affordability.

inquiry up despite about For in quarter volumes XX%. XX% the mortgage, revenue falling was

XX-year about to trailing Chris in As highs lowest basis, Existing slowed jumped pointed their considerably quarter XXXX to On their course the in of mortgage over as out, since since X% XX-month reached XXXX. mortgage revenue. lowest fell sales represented level TransUnion and growth recent total the a of applications weeks. mid-October rates point home

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

innovative grew Neustar TruVision History, Emerging cross-selling the and the and has X delivered to Even challenges life this despite and new of products business turn our markets low over which now past Verticals, for newer me like of Let in solutions. Insurance which growth commercial years. grown Chris Driving auto described. like Sontiq Penetration single-digit fivefold successful environment, X% win we the in that quarter. to continue

approach our particular, delivered in the business but growth was Retail most all it sector be a verticals public as Neustar our diversified to markets some E-commerce we provide This ultimately Tenant the has the believe media solutions and the existing The possible. and screening cost short in growth. employment of consumer-friendly highlighting value TransUnion term, we've strong benefits down end customer to integrating us will enhance competitive of and recalibrated volume and advantage. Tech, and long-term solutions into

a Adjusted telco down in like declines other our as up vertical caller revenue focused were in of X% The result offset line in ID expectations. about margins EBITDA XX spending. trusted as Interactive was areas advertising points more with declined slightly basis XX.X%, call growth landline Consumer solutions.

moderating our Our to recalibrated declines consumers. we business higher on see approach as focus to value continues direct marketing

stats at Thus we've acquisition seen to customer cost good on far, the acquire. tactics returns revamped attractive with better-than-expected

services and lenders Our was trends like flat indirect for in aggregators on experiencing pulled marketing, financial channels business our the offer utilizing as back we're other vertical. have

Our offerings built of continue good through to acquisition growth. our breach protection identity and Sontiq, deliver

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

revenue points. total of reported grew XX.X%, with X double XX% EBITDA by XX basis For the margin Adjusted our up markets about segment, X growing was digits.

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

over declined expect to deliver growth. India XX% continue X%. the We year of In to another U.K., revenue

Excluding government, we onetime included to with the declined revenue X%. would related contracts U.K. have

our While traction in macro fintech rest market CreditView well of as share to growing banking growth and business with and gains with driven environment as the strong products U.K. good challenged gaming. challenged, is the despite by TruVision performance continues the like in insurance and be

Our Canadian the business XX% grew quarter. third in

we've the was we While by to some In financial market offset win up marketing was have in low share market. Latin seen in the healthy fintech services, quarter portfolio in America, performance outperformance as Brazil a continue insurance revenue online fintech across in decline activity. remains the down and X% growth, strong generated batch new and weakness our direct-to-consumer. with

America, business in win While services, government continue softened telcos. macro across conditions insurance, new Latin to financial and teams our

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

X% of our broadly region the and Finally, a and environment markets. Africa across several the despite based portfolio macroeconomic largest on strong social in increased performance challenging a

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

to point, debt additional the now and in quarter. of have XXXX, we prepaid We fourth intend at million $XXX debt in this prepay

Neustar of we've September XXXX, of acquisition debt. billion $X.X the in announced we of about prepaid since back, Looking

in outcome credit We're in revolving December our we will update on Term favorable the of and on that we matures acquisitions have XXXX. reiterate Based when large-scale midst and this Loan indications, early we facility refinancing expect A no at plans you any complete this intention bolt-on transaction. smaller XX, And not we this a our even acquisitions to to year. our pursue time, previous and comment, are

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

to us brings That our for quarter. fourth the outlook

adjusted FX to revenue and expect EBITDA. We be to insignificant

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

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

previous assumption revenue considerably implied are from our We that reducing our in guidance.

current to our results essentially in quarter We business. difficult across extrapolated fourth the have September the better the match trends

between $XXX million expect $XXX to and We to down adjusted X% be million, EBITDA X%.

on be EBITDA I that by margin. result change our quarter. and the benefited want lower We a X partially a through More which a points. of the result expect mentioned I that adjusted margin basis high largely reduction to X reserve quarter quarter-over-quarter outlook, to related minute EBITDA services down in XXX flow to spend for fourth reduced of remainder third $XX earlier our compensation actual in than cash adjusted revenue is the than with XXX is of sequential in very end The quarters was change that million the the our came variable to primarily of third the items result offset CFPB. the the is incremental from settlement to financial the carries quarter high The a expectations.

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

full year. Turning to the

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

impact from of with of full currency at revenue X% million in lending, up roughly about $X reported revenue and organic million inquiries $X.XXX X%, headwinds, million X% or an mortgage the remainder basis excluding insurance to of consumer $XX and weaker $X.XXX FX and $X midpoint in reduction mortgage. expect The is and expectation a between We billion the of comprised result on the as billion trends as constant year largely Neustar. the our of softening and up

and grow excluding services down single anticipate low single flat be mortgage. For low and markets our to U.S. flat we business digits mortgage. We excluding expect to segments, digits, financial

in low digits. be markets, digits Consumer will currency to expect by anticipate double in Interactive We continue up ongoing digits. strength international terms, low and verticals that We expect grow we decline emerging single constant to emerging single low to driven

Turning company to back total outlook.

subsequent adjusted being X% be expect billion, expect would $X.XXX We to XX%. margin be diluted $XXX and approximately rate XXXX the X% X%. down of the expenditures debt in $X.XX XXX about to expense $XXX adjusted expect we XX%, as down come being our EPS to million excluding tax interest full XXX result in million acquisitions points. down between anticipate adjusted will prepayments continue our slightly expected of basis That amortization step-up And change approximately and amortization continued be down EBITDA EBITDA about net We depreciation portion to about a we expect our to to and in to in we to adjusted million, year, control anticipate $XXX capital is We and result X% be be million. revenue. from for to at

the current prudent a has Clearly, economy, global it in given the financial XXXX macro about since mid-March in Day we uncertainty backdrop Finally, withdraw XXXX. is we of changed the our level XXXX. believe March provided lot targets Investor in to of the that of

portfolio as value and as long-term trajectory have about we visibility when targets remain new of of our ever to our prospects economy. reestablish ability We intend bullish greater underlying global our outgrow the our the we expanded However, the into to product markets.

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

from growth our and quarter the be it challenging to delivering we focused to these But Thank deteriorated remain as wrap more XXXX. than on diversified a third conditions and progressed. good expected delivered we And proved you, Todd. headwinds, up, despite portfolio,

opportunities, our investing our steps necessary potential all to the we're confident our taking possible business, revenue best We proactively results of to performance driving capital business, shareholders. structure and and and discipline. cost our highly the against in and managing for the We remain execute maintaining new in long-term strategy continue we're our deliver

time Now me Aaron. to turn let the over

the session concludes Instructions] Chris. remarks now. our we begin today. Q&A prepared Thanks, can [Operator That Operator,

[Operator Instructions] Our Kelsey Zhu first question come Autonomous. will from of

was you comes versus a percentage Chris, the Neustar fraud help marketing, across wondering subscription in us revenue little of terms revenue better can Neustar of revenue usage-based I from bit what understand if communications. and mix,

sure. Aaron, Yes, want to... you

Yes.

about Neustar is is marketing XX% so of XX% roughly portion Kelsey, So Marketing total. of of subscription-based. the the

XX XX. So XX% is of about

X/X would subscription-based is revenue. about -- be of Neustar So truly total

look, And performance talk opportunity take let's to Yes. third the this Neustar's about quarter. in

organic there's impact of the insurance in and over one XX% you organic overall was down X% it feel pullback And we higher what expecting well, of second we we we -- commentary. were As the know, We when discussed leading break said, a piece of just half going at lending year-over-year, out especially roughly it's business. areas difficult that various macro which year. our in of the seen strong we've as given prepared growth components growth is our the in parts, expecting macroeconomic conditions growth Neustar. were to That experienced the to

we It marketing generation the number and will what will audience campaign tools. our and reduce of of And batch that's impacts the number experienced. our It planning reduce which campaigns, segmentation prescreens.

revenue Neustar consistent well piece Now with held overall the up financial subscription quite we and outlined. expectations that the of has

will in toward little year, year trending bit to bookings our be also and targets, record were above a year's Neustar. book at we point exactly So which positive. what last this for we're bookings, achieving a the that's expected a booked which We've full

the Neustar X positive. the of is products sale So lines across

recognize projects that selling selling which selling expected, we're services data Neustar fulfill we're mix takes our at the the and more we're expectations that to of are more in quicker varied type Now revenue than measurement, consulting booking less where are to time effectiveness we realize. and from audience and what

and some quarter of of the even quarter fourth And out pushed bookings from the so revenue expectations. the of third out

or again, guide of and sales of marketing really management. going that's component the down decline for data generation So And in And Neustar. growth with that volume then of third campaign the in correlate lending to in TruAudience, volume insurance was components our rests one the on audience origination. the specific

a Neustar So performance. the you hopefully, that that gives underpin of sense dynamics

The of Bank. next question comes from Deutsche Faiza Alwy

regarding the fintechs talk to versus course the you curious big or wanted across standards regional lenders, touch tightened across whether if of it's through can was lending the board in that banks. on comment any various if I I'm subprime about quarter. terms it And whether banks, your consumer trends of cycles it's prime.

more bit lending color happening So just a with what's little around standards.

absolutely. Listen, Yes.

start we with macro on banking. happy conditions overview So see to some the across

positive, the remains some -- real on low and wage quarter well, I think So first, progressed, unemployment there the is as growth.

said, Although that I got is you've the deteriorating think market is consensus cons. somewhat. pros and of measures and metrics that, employment the That the got you've

a over the been accumulated segments balances that be originating and right? consumer the savings of would but more That suggested in the in banks quarter, Reserve the saw September, becoming recently, so balance those we the quarter really and said, time though, had San some for affluent sheets savings cautious Bank gone excess of in pronounced lot for all most gone Federal that end about the on of course new population, declined Francisco have And third the excess the loans. quintile, by except

positive large traded expectations. and expectations their results, they publicly of a couple the The more have area, banks, underperformed down volumes. new the past bit, were large while reported though, the generally banks weeks, over been has that one Now were lending than they

new you fine. consumers It's is loans tease most volume the incremental of apart, was Now that the impacted. revolving to component if that

upmarket larger dynamic part Now stable. perceived to more as the that back to this the market, were of of some where was the institutions a had There we earlier year flight stability of and in other concerns. the be to deposits really goes aware

it's income this by activity of see that performing growth, down. earnings, interest driven those the net in well, but while they're you round recent is so And banks, lending

We -- new performance of -- is big credit lending our that numbers pinch the serve at portfolio, origination part I banks look you And mean, in we mid-market fintech, because obviously, see the and is a of in pronounced. and share largest When that banks prescreens got that we happen, more produce. sizes on our the banks, volumes. when going in we all of to the marketing traditional going of that's banks well. number reduce to lending to become in it's quite smaller batch we're pools reduce going as seeing a cautious, the just It's course, reduce pullback the there, banks of planning. credit And and

so fundamentals. impacting And it's that lending this in business retreat macro seen the we've really the that's

next comes Baird. The of from Meuler question Jeff

I accelerating I So there the know can talk environment. anything you And margins to Chris expense comp structural else weaker in QX. adjustment caught regarding had and to much adjust efficiency more the details expense in to on incentive decremental a to how come is volume But just programs. opportunity structure the

like still really margins But to for forward weak just through understand incremental if programs can the function I'm of if weak. margins the time QX remains a implied just in that's think volume or margins seem we QX going and implement while. more a decremental how the And environment trying to new

Sorry long for the question.

Yes.

So there are listen, to it's unpack And a in several things good it. question.

very and purposely fell also recently slowed appreciate drop revenue in you each to our and entertainment materially of progressively structure, and growth quarter, the of easy The in travel And So marketing. so insurance, of things starts cutting how a lending about so the markets in revenue headcount. months, course, would reducing And will, expenses. had time is right? our we've expense proactively past year-over-year first reducing managing -- very without included you much over been say September judicious adjust the external with the It consulting, can rates I month have we've the XX volumes right? in origination we being if as

and decelerated and us adjust you we've the count to been all filling But in strong structure of new expense to revenue a be again, environment our current kind structure of freeze proactively can not is what there we to that maintain cost backfills. of we softening revenue then will hires on the somewhat allowed against has hiring balance in a So us some And and to the margins. necessary. do need that work and do environment

referring we that employees over my are proportion benefit of located are the years in been have in we of implemented that structure can roughly attractive talent comments, to that was of in But the progressively reduce time. X operating centers the I our model markets really our ago, global excellence increasing cost that where

TransUnion total Now still roughly of in over say, terms we'd more what that total it on that. balance, evolve over there's structural we've on ideal That moved material and the to going said, operating as those structure, dimension employees have employees functions are continue push we're markets. profitability. both X/X And opportunity the will to what to being of because we toward management a led impact our

the of centralized for all support businesses. we've Additionally, operational credit functions different

leveraging We will that. costs be able by effectively to streamline and balance our against our more volumes

all product various call Neustar We've of OneID Neustar the the platform, Rise. journey. significant core to began to that The OneTru taken came, the though, technology leveraging to been and globally. our our platforms destination of proportion as digested cloud via investing a now in is for also data we we Project technology which migrate We've other We've point make, I our a wanted applications.

technology the us consolidate platform, is to you'll on this advanced us our do What of see take we multiple costs which efforts redundant lot accelerate and and now have to next a going out. very is let platforms generation technologically

So And strong focus acquisition to we've integration. the complete finally, got there'll a be on work on that.

as we're going well the synergies. our out We Sontiq to get well. cost from of we're hit million integration We'll of going that And confident front. to and take going to takeouts $XX benefit really do some those Neustar Argus structure. continue the We're highly forward for on full realization

drop in to going cost benefits those revenue. there's accelerate So we're really think as takes acquisition will Yes, to be there's and structural some also pipeline lot the the It a of that time of integration. structure, margin about along correct in cost there but result a dimensions. been improvements management a

Steinerman question comes from of JPMorgan. next The Andrew

still I fraud just platform X/X I business. new And a bringing strategically, about out see then about to think today. you fraud to know is I Neustar, wanted wanted the -- fraud talked of that on of this TLO or with Neustar you've again, done on and is next how part is of the kind and fraud? reiteration of really the side, integrated the iovation within

Yes. Good question, Andrew.

much, high Communications quite to just So total It digits or be nicely, didn't the risk largest. marketing and right? the Risk is roughly expected it of business quarter their in quarter. fraud grew in grow We grow very the low much double Neustar the grew digits would revenue. XX% faster. single

impact budget It risk grew call And coming our of low volume centers or assuming up contracts we macro happen because certain volumes look, we set conditions. expectations, are through the single That see on of to charges didn't digits, We quarter. online. really it's excess. bounded. softening that volume tied and this of the believe because are degree and we're just it's when And the a

next this, Now the in fraud a substantial part is of and of generation look, terms of business. our platforms

and where largely in when fraud we a we we solutions another the machine common we fraud which of got in multiple market. We Then solutions, fraud of mitigation U.K. have advanced platforms can attractive, we OneID but set and and got point repository When bought products, products all of unify although a got the platform Neustar, U.S. acquired duplicative data in these with also AI. CallCredit, upon a on orchestration analytics we in different great risk learning variety

that to all next work. in version year. technical for working the the product of part of of accomplish of the early have We'll since outset been launch the We really that acquisition

advanced beta to think with things. can that as allow us of friendly two you launch it's like customers, but Now to going do an

to here our the and product It's accelerate So it legacy ID structures, allow of and One, it's it globe, it's across this or very to consolidation is whether also that, in the Chicago. all truly excited in about growth leveraged point allow iovation a U.K. important solutions solutions in category. all retire legacy It's It's can the going cost of it's or platform it of future. the of we're next be to the the global generation. us us a solutions should TransUnion, right?

of of Balsky The comes next America. Heather question from Bank

a bit in your little more dive hoping Emerging was segment. on I could Vertical you just

you're visibility in of made of what Just screening given sales tenant of see the kind near changes kind need in just for and insurance, you can the about help term? those business what to us to in part that the accelerate you the seeing think and you

Sure.

would mean, first look, a about be our diversification see in I reporting of basis, a is of our even difficult TransUnion we've U.S. the coming you in some a macro the Old only, though challenging because on this benefits we've and principles would can based talked times. negative. achieved to results So sales credit those from investments those And fore. period, quarter in recent be portfolio

right? from We've we got markets, X% growth happening in in are But to, point you the not offset are firing benefiting cylinders although as emerging emerging all there. some

have single-digit typically, grower strong is Now conditions, high insurance. look, in and a normal continued in our insurance, be sales to

ramp insurers The up that and the and been has we've priced now is right their risk are to problem industry discussing been we're reluctant seeing discussing and engines. appropriately underwriting that isn't it's what

increasing and prices they're their or some so upon in a lot risk. walking geographical they're risk consumer jurisdiction some from away renewal And

you those if time some ecosystem. Now it for policies, to trickle down the will, unfulfilled in takes

some Some go carriers, nonstandard to carriers. smaller go to

unfulfilled, our I upstream, full got right? revenue go mentioned, products. we've of greater is the of And suite Some penetration the dynamics as

payload realizing for we're a So origination, origination. higher data policy per

remain bit. insurance for soft So a is going to

the continue successful working I They think to approvals, that. push for now, And carriers they're correct but hard higher that right cautious. will rates. time, to for be over are Now

a around bit of the with the what business. undergoing because that even is settlement certain Screening and the screening -- CFPB which a information tenant not the should point of of in Rental the screening employment categories at records And be led used or our leadership and CFPB to in evictions regulatory Tenant announced we happened believes be way criminal a is certain there time. around certain reset of a current only that in current scrutiny, should used

practices. the it Now and that is historic a industry different SCRA from differs interpretation of materially

the views CFPB, clear. reset, with data And we've in this our will, practice and with TU you this done adjust working business. we provide we the industry. the had Tenant this that the in Employment accordance said, particular, in with and when of in and and provide. They've have to But And for expresses change standard settlement, the if CFPB their new Screening very the with been FTC we've that it

Now clients to their risk have we other screeners will rental practices. expect regulatory and their adjusting who the now begin

got hasn't So prospects part growth tenant improve now why industry that's and large in that it typically would, to reset. for but that stabilize provided the this it growth we've we to the expect

Heather, I to challenge, X the point definitely the question, out we have had double the where just most as digits. be vertical some that on well because media Chris about to have your particular, talked it'd think the not In Let success grew verticals add Verticals. we Emerging but me remised in

that. expected Neustar As than in of back But marketing we capabilities. significant Chris with environment, results in greater the posted And this pretty strong on nevertheless, business. some said, it we already some that the wins something was

just remarks. about talked prepared remind in And you, Chris to those his

for that's us So as big deal a well.

strong in revenue to we growth as commerce from Our is refer our tech, what public are sector Neustar. vertical those also also a digits. across and we as particular, In call significantly from we solutions in grew as trusted those benefit nice services And double areas, communications. really well The verticals. is very saw up seeing what collections

Toni of from Morgan comes question next The Kaplan Stanley.

in given see just trends, on or prepared You of the just I that you -- are September? that sort October continuing quicker. Do started ask move remarks to September trends been you lot mentioned seeing to getting getting it pace early of the a worse. had at in wanted got the sort about worse rates

quarter. July. that to July bit where third best just and the think insurance has lending, would I this saw shift media we lending on is expected. were start we had I of in tracking and were say provided sudden one the have September. of months we a consumer They beginning card, volumes, in so go okay. to as already lower what place mortgage were on the late to August Unfortunately, earnings little and our than just impacted that reiterate, in And Chris articulated call the coming in is a the And that to guidance

remainder fourth we for year, So out looked we we the to that rolled that the in of and into reduction the quarter took that guide as our prepare September forward. sudden we experienced

today. where done that with we rather we we we were weak at this up where week guide derisked were the looked October, QX have We and have volumes also in put have we we've the last feel is until numbers at thoroughly at. environment like out And what taken

Sabadra The of next Ashish from Capital question RBC Markets. comes

of EBITDA $XX $XX CFPB midpoint 'XX -- lowered EBITDA lowered guidance the or Because to the whether you was EBITDA? high adjusted guidance? lower million. in was just the is quarter whether due we're Why question I that's investors like from wanted Is so much -- the clarify within how if fiscal CFPB at guidance was the by the settlement, than revenue revenue but year more it the getting could by third the million, fourth the quarter? that significantly quantify included the And much revenue settlement? was EBITDA at to

this Ashish, morning. got there you So for X questions us

CFPB of rental pertains about, talked on me for million. then that the pertains $XX total was let and a to matter, and first freeze CFPB. one screening that million to our So FTC, was it We And settled million. has settled settlement the that Chris one X $X take matters with $XX security the we for the the as for

our quarter settlements been add back EBITDA, coming as $X with those have million. exception not adjusted the of an for the All of reserved into within

reference prepared my remarks, that. to I In made

was of have there an million did incremental in $X we not So the that aspect in our guidance. quarter

EBITDA. already for impacted had was and amount other the So adjusted accrued

So outlook second our pertaining change. to question why QX is the EBITDA the adjusted and

is why that. September and just the question greater back to goes revenue trends bit that QX little to compared Toni at look and you than about it our If a And guide. the our prior EBITDA in asked guide

So fall it that of the revenue. margin. in a And more off credit products of our suddenly that higher revenue starts core really with saw the late type is we September carry

a products have And while What still at very so margin trusted that offset solutions, than which as is credit growth that such we've one TransUnion's core in by margin is is what that seen just the margin carry. even that's is relative been the EBITDA taken at down. adjusted lower products that to, to attractive I we referred a call

you than the the greater profit take you a that ends takedown situation is. So what with end mix revenue when where expectation up together, up being

see our cost a mix quarter-to-quarter. our you'll It's dynamic not structure think same. financial Yes. issue. that's revenue in disclosure to Look, the I an important I appreciate. that cost a It's remain mean issue

that actually confirmed on products selling expected trends we've we profit. products in we simply July, lending ended when to so have we credit And our based credit guide very, flow-through high and the very up more than a to seen, sell

In discussed, the mortgage and I've volumes because call the contribution because best lending, we score But our trusted lower like data that of to retrieve in reduced of performed as costs. had credit parts which portfolio products. license the solutions a of margin, credit things have

Barclays. Manav The question from of comes Patnaik next

hoping we fintech just was I please. talk could to all your exposures,

led consider it, should maybe what we exactly any like the a U.S. as And exposure And was then as the there what well. if in percentage the just revenues? what I suppose, of of there's to U.K., risk kind and So write-down? is

generally, talked fintech start Manav, you before. this just have about and me let Well, I and

We in because share rising materially have and also both the fintech and lending also large U.S. and a been in the in U.K. leading standards. has downturn And very and that impacted in the rates is true of tightening fintech

So that's the fourth quarter our but which had an that's already quarter about also articulated. just guide, our already and third impact Todd in incorporated results. thinking

the business in U.K. write-down, goodwill. our in to shifting Now

then, low It grower but particularly you a profitable. If we business not was it the XXXX. double-digit recall, was in acquired

digit. slowed underpinned By was we the the book So quarter our that the on exit back of we action, digit the goodwill revenue of low high value we amount growth low organic growth And we about and sheet. assessment was took X% cost that double balance the that time months. posted for double put expectation, which to 'XX, and X exited single,

Well, from macro point been buffeted has U.K. that of market a the forward, by issues. series

call lenders of would was lenders. them put foundational credit in share in U.K. the marketplace. We that is part money component some on a They the U.K. to small a in business. pressure that had were decided unsecured them them of call first It here, dollar the online. The call their the of Well, regulators lenders payday disproportionate

So that further we by core lending And for market compensated we we did. mainstream we into and first, contraction, taking had the adjust did. which and upstream it pushing to to which share,

which the to The U.K., lending then then inflation rates and Brexit environment, impact COVID and together which increasing fintechs. that made have of next unemployment continues fueled and impact in seems to very has some a came high difficult from all the it of

in we growth all that digesting at that the to also one but we to back can we've achieved, quarter. the expect, did goodwill the prudent the rates condition looking the the it that of expect after that this thought take intermediate was and given that we So of economy, in charge we period,

The Andrew next of from comes question Blair. Nicholas William

more It say directly rationale U.S. Heard I just quite there. market and wanted weaknesses the strengths to -- the seems credit in a bit like of point about share this ask most some core maybe to Is within or the successes of on or competitive competitive anything still end about much dynamics. of positioning how that share tied there you market you that weakness kind and you're that conviction in market have market there. growing can end is to

Yes.

issue. share believe of As we business a comparability point. look issue at more this at It's it's it, we an don't

X the time. have noted, As of have diverged you over portfolios bureaus many of the

employment a Some of kind large loans the some to comparison. and TransUnion insurers to in do the you've arguably and income of segments what's in lenders on market surgery focused share, various are get on true direct-to-consumer, also want question and that services to a got policies. There's of them to originate leading providing the has very focused then more are and and share U.S., a reported

One services marketing within We our example that is batch vertical, report everybody does. separate not we direct-to-consumer. U.S.

the price benefits larger commercial don't the and other diluted than and over market lending our lending from of overall, our share size business We space. given have gets of with significant bit players provider, data in Some people third-party include a that. score a increase in mortgage base the a

positions. own as our what's included And compare evaluate this, got well in But really to pointing with size negative. we're or think and no, anything share you the we positive really don't as of differences varying and to has the do performance, so not the to anything as the we respective consider those

course this we're given this end is a call we the in on or with later for to We morning, time forward us and over quarter. to And earnings week of day, at we Great. our look going the this thank point. either joining busy Thanks. are all you speaking you the

The for conference disconnect. presentation, has Thank now now may concluded. today's and you you attending