Equifax (EFX) 18 Jul 242024 Q2 Earnings call transcript

Hello, and welcome to the Equifax Inc. Q2 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Trevor Burns, Senior Vice President, Head of Corporate Investor Relations. Please go ahead, Trevor.

morning. good and Thanks, conference today's call. to Welcome I'm Trevor Burns. today John Gamble, me are Mark and Officer; Executive Chief Chief Begor, With Financial Officer. Today's call recorded. is being of our Investor be will website. IR the the today Relations & archive News at the of Calendar available tab Events in section An later recording

Conference also the website. call, the Earnings News XQ tab our IR can & materials making in are the XXXX certain materials reference Events During found to Presentations These labeled be that we'll be Call. section of at

Also, that filings may in understand will statements, These filings. our third its set actual we of certain make including forth the and that Form are with impact cause to guidance, environment. factors from number quarter results our forward-looking factors could business XXXX our year risks, to and including other materially subsequent uncertainties statements business Equifax XX-K differ full our involve a SEC, help and XXXX you and expectations. risk Certain

We affect will that EPS be items certain certain These measures, also operational our adjusted for performance. which financial to adjusted underlying EBITDA, and be comparability will of referring the including adjusted non-GAAP non-GAAP which with earnings in website. are and reconciliation in our Financial found measures, section the can at included be of Results our IR detailed release Financial the are tab tables Info

Now over I'd it like turn Mark. to to

quarter want cloud update to second I you significant results, our transformation. our strong progress the Before in I cover on

is services milestone Data telco their Equifax. several and a of next consumer will Over the which and utilities for the the weeks, USIS for huge exchanges, and Fabric onto complete all customers migration cloud credit

Cloud the the will ago, three we data have X Cloud. which Along in we with exchange, years work the completed over Equifax exchanges migrating largest our to New EWS Equifax number

over XX% by Equifax with As in XX% end will our in the expect Cloud of cloud year-end. we of revenue about Equifax be of revenue of July, the the

X-plus past over huge years. been effort have the migrations across a cloud The Equifax

to on We expect going to as innovation, focus fully new the we to significant forward. allow products AI cloud from competitive advantage pivot growth, have a building us leveraging to and

with products our Completing and data new will now product that the USIS expansion will at and assets, Data EFX.AI, to of and differentiated the USIS accelerate have which will continued bottom line. new innovation Fabric, our drive expanding data our access top streamlined proprietary accelerate development. We through cloud along

Index We begun also has for times, product reduce expect to USIS accelerate. market Vitality their in development new to faster already to solutions. resulting see product time new our

along across platform. Equifax is analytics with AI AI explainable our global Google Ignite, Interconnect, USIS Vertex deploying decisioning proprietary our and platform; global

on For and more Ignite USIS, model development Vertex enables faster our predictive AI platform.

gains. processing most is will deliver and datasets that today's the The up cleaning power on ingestion also share free and growth focus USIS expanding advantage products, the with stability analytics Cloud with New the always-on cloud importantly, and team going Equifax fully USIS Cloud. new markets. and to innovation, We're And give to market, faster will data driving transmission Equifax a in digital faster driving greater competitive data

loans, able development solutions data both USIS' in mortgage, EWS income products begin also cards of for With we'll USIS auto, and with credit employment and can be cloud, and the data, new only integrate TWN, that P Equifax deliver. to that

allows the and spending intensity Cloud improve the of goal lowering and quarter, supporting systems legacy and operating telco USIS third the utility in to XXXX on-prem us decommissioning to consumer our in business. capital start of margins migrations that Completing the Equifax reductions will our

transformation credit Canada to next activities. migrations the complete month. our In also progress substantial consumer expected second their Fabric to made on quarter, customer cloud exchange we Data is international

Fabric Data of decommissioning Spain's in consumer significant year-end. and to continues make their completing migrations systems progress And cloud of The the the legacy with half is schedule Europe to goal complete U.K. the exchange on decommissioning of first and to XXXX. migration by credit

and year. make to countries additional half progress American several And Chile Latin in substantial Latin the second and we've America, in Argentina the on cloud of expect completed migrations the

to line our our and to Equifax the bottom of be building cloud energizing our top entering to we new New next transformation. cloud It's We're approaching chapter the finish New the the from as Equifax drive capabilities Cloud of line. pivot leveraging

strong Adjusted of revenue the a EBITDA at billion, above the over our reported just turning $X.XX and end share our line per Slide second were high April April end of XX% with quarter over guidance. expectations margins and guidance. just was our in X. to Now We EPS up $X.XX had X% top with of adjusted well

businesses, the top end of about growth, in long-term XX% of global revenue XX% XX% which growth non-mortgage revenue to above total Our had represent strong currency current quarter, the framework. which Equifax constant X% is our

end at top EWS the our talent to in up was over was and organic and quarter performance was XX% in by growth X% This constant growth also organic non-mortgage led that XX% by revenue strong XX% government Non-mortgage the in growth of framework. revenue XX%. driven Verifier, X% currency at growth

in constant America delivered XX% and International growth, organic strong led growth and revenue by growth XX% Latin dollar strong Europe.

weaker with than in growth of quarter line expectations. and X% our revenue non-mortgage somewhat USIS last was

non-mortgage USIS cloud the We consumer in we this U.S. later growth to migration see revenue complete accelerating month. as expect

mortgage performance mortgage where products. and pass-through mortgage up consistent driven under XX% growth growth mortgage revenue in up X% the prequal down was our just pricing from our strong XX% revenue mortgage with revenue benefit a EWS with The and USIS also consistent by expectations. expectations. in reflects mortgage continued strong Total in actions quarter. and USIS, was was was The revenue vendor the in new U.S. our strong

XXX quarter EWS our our was up business strong basis of was from product Index XXXX frame above framework. innovation XX%, units, of XX% sequentially Vitality execution The Equifax of with and points also long-term all another particularly for a a guidance with our had Vitality. Vitality broad-based strong almost XX% Vitality and XX% across

strong Non-mortgage above well Services revenue Slide Verification our was delivered up X. up above to expectations. and expectations. and Turning basis Solutions very XX% sequentially Workforce XXX X% growth, points revenue our well

another strong very revenues quarter billion their big from redeterminations. Government grew the with substantial growth in XX% at despite growth had end penetration $X CMS growth sequentially revenue TAM. outstanding state post-COVID revenue continued and the of Government strong in initial completion of March from

continued term expect We Workforce over Solutions. the government long medium growth and in strong

new revenue our in data our improved and Solutions incarceration was up strong sequentially, XX in the talent May, and sequentially collar XX% and saw very Talent insights the growth up the Talent Solutions strong percentage approximately expectations. the hiring through volumes data Based above from in Solutions vertical. on points Talent by products vertical. outperformed quarter, into new records, well markets EWS percentage a penetration points BLS we products XX white

line X%. consistent discussed was outperformed you to completing XX% be than and by in with TWN our XX% in XX% the TWN USIS just in down down inquiries quarter revenue mortgage home difficulty continue total guidance. EWS April. with credit under weaker inquiries we mortgage revenue second with the down continue April buyers EWS and inquiries inquiries were to purchases. over TWN as have

second quarters the third significantly third and in expect quarter growth already from and the We fourth fourth in mortgage the significant additions revenue EWS in and from to in quarter. records delivered TWN benefit planned the late

was from in single-digit revenue double-digit and consumer growth growth EWS X% management in debt lending up and Loans strong P auto. high

revenue Services ERC from revenue. Employer principally was XX%, down lower

about to talked WOTC in April, Excluding X% by ERC, revenue, as offset down revenue we revenue due was lower lower than positive ACA expected at partially growth.

in fourth growth We return quarter. the expect employer to to revenue

Workforce good records. we XXX sequentially our and new to margins high-growth cost like strong execution, government revenue while grow EBITDA basis continue and Solutions invest of to were in and XX% very adjusted expand talent, up be and growth Verifier non-mortgage products, TWN from in points verticals, continue

positioned strong want to revenue contribution for in Before leveraging moving to Rudy Cloud. from has and to EWS made growth, $XXX last grew billion about of last $X.X the the Ploder leadership, XX Equifax Rudy's Under USIS, on Equifax year, EWS above-market XXXX EWS significant and years. over million acknowledge the to I

We're leadership, continue experience, Chad's financial super be EWS in regulatory depth for will who energized May, broad to leading growth. above-market executive and asset to us service drive as they Chad focus Borton, big joined have customer proven a Workforce Solutions.

to X. Turning Slide

growth EWS vertical We our the very government expectations. revenue strong our in XX% growth in continue quarter to see with and above

and the data help social incarceration for side federal On supporting service employment accelerate parties. program Americans the of EWS to needed the XX million to the all are needed win-win benefits of -- we with slide, government integrity, to delivery we ensure time income over and digital agencies left deliver that a provided some agencies

that over substantial the in see with the short has And billion $X a in EWS frame, time you XX%. middle the government of our X-year a penetrating vertical CAGR of made slide, TAM progress

make government technology incarcerated EWS rollouts solutions additional government enabled data to by consume. migrations incarceration progress new vertical from our capital the expect easier record product sales differentiated to -- and cloud-native leveraging level, state our and federal We strong individual to resources data, to system our continue that in growth, significant makes

this experience local of strong and vertical in and redetermination again from and and expect clear the business phases 'XX the consumer beyond. operating authentication processes. government we The improve the agencies application revenue state, EWS and in federal, strength in growth government their help to recovery own continues EWS future to was efficiency and quarter,

the Turning with will collectively to X to strategic quarter X. Slide additions, new database. million partners signing record EWS four agreements contribute over strong new another of that records had TWN

ability accuracy a customers. our client their levels Our and testament operational technology, is partners to for excellence service continued from to in highest and security EWS' data success partnerships deliver expanding end the and of

come to the We fourth online new quarter. in expect generating begin these Solutions for and Workforce partnerships revenue

versus XXX towards income-producing added to TAM records, Total year. million a records million XXX XXX In ending last were X XX% TWN on with up million At million individuals. we the have million unique XXX quarter unique the are of database, now individuals, active XX% database the active strong the of room and XXX records quarter, TWN to EWS grow the Americans. plenty up million

EWS year on continue of close second partnerships, very is companies partnerships and XXXX in to the expanding pension and also the expect focus pipeline HR well database. TWN building software to making they in of a progress as we as the half good as with contributors

Turning guidance. our to X%. X% Mortgage solidly be year-over-year inquiries, revenue were was and USIS grew X%, while at framework growth X. our with revenue down line within in XX% Slide to line with in largely mortgage significantly up April revenue our guidance. XX%, USIS long-term April down continuing of to was credit

home new last revenue we've market with prequal the low modest strong growth inquiries, products, seen weeks, the quarter, environment, inventory we our in strong due outperformance. the Consistent drove improvement seen pricing Despite have with levels. mortgage the several reduction the first and of mortgage the not over very to mortgage likely in rates along an continued strength

mortgage was total the million, about quarter. At XX% $XXX revenue in USIS of revenue

team's We revenue and Solutions revenue. quarter the at a completing Consumer second in impacted growth was some migrations, USIS on of broad-based up expectation Financial non-mortgage focus cloud in believe offset expecting. were we customer Marketing in We were Total new was business U.S. likely dampened of X% saw decline partially the strong by activity growth negatively by which below BXB the which X% our online growth. Services,

bureau were we tight telco that and Consistent USIS insurance. all and below market the also read our fraud broader FI broader vertical. USIS well declines of saw low quarter, outage our was conditions and as software in X% was below expectations. These impacted declines the revenue digit non-mortgage supplier in the BXB partially and digit offset growth down lesser first extent, also auto. in continuation in a with -- was by which third-party about market about. FI declines expectations, sales as by a we low-single a impacted system saw double-digit was auto. the Auto ID auto and as credit trends from online

primarily X%, Financial BXB X%. Marketing up prescreen revenue up our in business, was to Marketing marketing. growth due Services, offline was

a demand with large business strong wins. from fintechs revenue suite coming Our for for including been trends by Fraud up our declines Prospecting. prescreen fairly solutions, and banks midsized consistent and Ignite was growing new offset unions. Ignite in credit growth seeing XX% from of USIS quarterly have very FIs is

consumer USIS direct another very XX%, strong high had single-digit indirect quarter, channel. in double-digit up strong Consumer business and Solutions in our growth DXC from channel growth

second We DXC in comps mid-single-digit in expect year growth year. against this our business from last half the strong of

revenue lower-than-expected on the the non-mortgage quarter were adjusted revenue and reflecting In efforts growth. across complete expectations, USIS impact the our transformation growth business XX.X% had and cloud an in USIS customer margins below clearly the USIS, EBITDA its first half. engagement significant the to in

weeks, able cloud is of in 'XX USIS see growth, engagement improved USIS customer As the to and course in to and will beyond. migration and consumer growth half USIS focus next expect fully few we team completed and the year on non-mortgage of this now be in the second revenue

International in and strong XX% constant XX% and in currency to due growth growth of revenue X. April guided very XX% excluding very a the America quarter, in strong in Slide continued to Europe. impact Turning currency strong up and was we organic the BVS, up constant in the well above Latin a to

from growth and a in very management business. strong XX% revenue credit was the up growth debt strong data our currency in very strong and with XX% in businesses Europe our X% quarter local continued

local to Boa revenue driven the Central Latin in with XX%. organic growth Latin Vista principally of was strong XXX%, acquisition America very very up growth due Paraguay America. America and was double-digit strong currency growth Argentina, of by revenue organic

$XX revenue reported million. Brazil basis quarter the on in a was

Solution progress to clients Brazil on Equifax release to second the business integration. medium businesses half. the and for make good small second larger service continue launched in Brazil in feature was We quarter the full in with Interconnect

is of to progress database. now also and with making Brazil customers. for data apps identity Midigator, driving their first The driving The is been and excellent including Ignite fraud acquisition Brazilian team integrating growth Kount to launched, negative and on have And accelerated add Equifax. solutions, available are

in growth quarter. X% delivered Canada the

the few As I and Equifax rollouts we're going to expect their And new complete credit previously weeks. consumer see product USIS, to we mentioned, to new next similar from to team. growth customer expecting in migrations Canada the forward exchange the Cloud Canadian accelerated

expected, Pacific, better revenue down as the down the in than was first In Asia about quarter. X% XX%

We in second the growth expect half. Asia to revenue Pacific to return

were XX.X% expectations and of XXX performance. up revenue margins EBITDA strong basis given growth adjusted International sequentially points above our their

Turning to XX. Slide

very up driven make all was Index, points a by progress and with We strong quarter new which innovation launched to XX.X% XXX products delivered across EWS broad-based our the of continue basis had Vitality driving over sequentially in that business XX units. was performance And remain shopping we on Index new behavior in and the product points second expect mortgage strong XX%, Vitality with second a quarter data, EWS of VI to and up with focused incarceration basis XXX or onboarding I-X strong sequentially. half prequal introductions solutions.

points improvement USIS basis Vitality up Index with saw continued a sequential of X%, sequentially. XXX

to commercial prequal cloud they for cloud-native strong products. We expect the mortgage to USIS products in continue VI our in performance and infrastructure and new show leverage new our from identity fraud, innovation new completion as

up also XXX VI International the XX% had quarter, sequentially. strong points basis in

a capabilities double-digit Equifax half, over full with new second strong our to Equifax in year expect XX%. for We rollouts of product Equifax VI the Cloud leveraging VI drive

our and energized drive to a Equifax by strategic enabled strategic of explainable will execution priorities Cloud. new one board EFX.AI. AI our leader have on new EFXXXXX who vision key is EFX.AI in our We're

are using We sequentially and points fraud in new second XXXX and built which we XXX loan and drive affordability, the models last and of are solutions. were of pace which new developing as at and AI goal Equifax ML, identity XX% AI and scores basis is that accelerating up and In ML XX%. performance models areas our our scores of predictability using and quarter, our of XX% ahead year's such the and consumer

in levels and adjusted practice, credit X.X%, John, we mortgage July, adjusted per with year the midpoint with XXXX with of to of full $X.XX a maintaining April with early our at a This Before our USIS for share, guidance. midpoint guidance saw guidance. in year guidance comments and a June of share, revenue revenue up implies X.X%. estimated at $X.X provide second our inquiries billion, XXXX an few up framework XX%. up X.X%, of and and I XX% market turn full over consistent consistent EPS strong $X.XX Consistent $X.XX billion, activity down resulting with this over We're the wanted I our EPS up to assumes it Equifax on half

we're using forecast and rates in the have a mortgage strengthening current Fed know, in in not activity decline impact rate cuts half. despite to activity mortgage seen and trends you market modest As the the have second not reflected market any of recent the

at Services improving in the tight performance. the It U.S., market second with growth mortgage quarter of credit in the again, continues we XX%, growth organic Delivering very against strong broader non-mortgage level continuation half we saw and performance Equifax dollar Verification of market Workforce strong the in very the FI levels growth auto growth first weakening in saw businesses our non-mortgage that leading non-mortgage markets about and second believe, the market. reflects in continued led also half, U.S. in International by and despite -- the the this impacting we the constant Solutions USIS, some first of strong is to in growth and the in

While we second grow weak expect we to continued in by a the revenue expect XX% half. mortgage market, mortgage

market levels. continue as normal to to market significant Of XXXX and come to improvements activity course, returns 'XX future down mortgage rates we mortgage expect

mortgage consumer revenue Argentina. businesses margins. at the principally Spain, gross continuing mortgage transformation improves quarter As complete expect to and shared the our recovery Canada, our in EBITDA as as of margin flow market $X.X to we've Chile we're deliver U.S. our market we high businesses growth in previously, very through expanded the And fourth we EBITDA billion mortgage activity to and

quarter provide provide to framework. John our more quarter results to over it turn our to detail second to third like and I'd financial Now on

products, quarter from growth strong record and builds on quarter pricing. second new third our guidance performance penetration, Our

Thanks, Mark.

our Consistent Slide from the last to first of credit practice based for X XXXX, X our is run with over current rates XX. half our reflect to the normal last in patterns. inquiries the several years, Turning seasonal modified to guidance on weeks,

just We XX-year weeks. have mortgage X seen the for under last X% rates

seen not have as future. rate in to we although activity either credit However, the mortgage expect market of come run down rates TWN to improvement the improve in meaningful or continue inquiries, we

Our XX% with to 'XX in down for inquiries which be XQ the is guidance April credit and 'XX, reflects year consistent full about in year guidance. calendar X% mortgage our

over third the down in increase X% approaching for down TWN reflects guidance the year quarter XX%. to be Our full and

consistent TWN normalization the an mortgage in begin decline the reflecting inquiries the are about saw credit to interest decline. down we Second half with as the inquiries, shopping stable of half year or rates remain expected of first in

as through discussed level we we a prequal XXXX mortgage move to and the growth in start in the outperformance of new mortgage we as moderate revenue lap As we reminder, expect products. April, to U.S. as

the We USIS second expect down XX% the revenue with outperformance mortgage XQ USIS be quarter, XX%, in to outperformance to be about XX%. full over expected mortgage from year

half We quarter. we in in expect TWN new boarded mortgage revenue outperformance second increase the the records sequentially to from second the

up revenue of to expect X%. Mortgage revenue be at revenue we about to quarter total XX% Slide up XX the revenue negative to growth midpoint. will is be between total in XQ Mortgage should about of currency be revenue. be third with about under X% billion revenue XX%. revenue just 'XX the constant Equifax details over is and FX In XX%. XQ expected 'XX, up provides Non-mortgage the our guidance. $X.XXX $X.XXX billion

EWS slightly should under to Both driven return about is Workforce from the by XXXX. with up third to we should Non-mortgage be XX%. and as and government growth the up non-mortgage quarter in XX% mortgage TWN quarter. slightly seeing follows. again, in are revenue again third in talent and revenue strong solutions. be in Verifier up growth saw be the revenue we throughout to the Verifier strong expected Solutions be the the with Business records expected second non-mortgage growth third about mortgage growth benefit unit quarter, very is revenue growth X% revenue quarter performance in

expected revenue Services ERC. in the to over is due declines decline And principally in to quarter, XX% Employer

adjusted to be XX.X%, growth from quarter about basis return We the revenue Services expect fourth EBITDA mix. points to XXX in margins XXXX. expected EWS to are principally about down Employer sequentially, of product

telco be up EBITDA XX%, Mortgage legacy of XX%. up USIS are expected margins revenue XXX quarter. we be should non-mortgage be and USIS X% X% begins revenue about should up over from the to systems. expected X.X% about sequentially year-to-year basis utility be over year-to-year. decommissioning up up up to saw revenue Adjusted and about points growth is as this consumer

expected be was EBITDA organic currency, expected to in about the the BVS about of of revenue to to constant margins of Revenue XXXX. completed is XX%, constant growth. benefit August up acquisition reflecting International expected which is in be that are currency. XX% be up XX% revenue includes about

X% margins to are and expected under decommissioning midpoint. revenue Equifax of to 'XX legacy midpoint XQ XQ 'XX of increase the utility the the reflecting EPS guidance, $X.XX versus 'XX adjusted in consumer and our the up of early $X.XX be share, XX% XQ expected EBITDA growth Adjusted at sequential telco with at per assets. to stages be and

As of BBB, a leverage our is nicely our the the XXXX with of by the quarter, X.Xx goal credit about this X.Xx. year-end BaaX believe for within leverage levels was ratings. current required We second of ratio end

have flexibility share repurchases, cash continue in significant shareholders to as through achieve return we do bolt-on to will we acquisitions well these and begin beyond. to to increases levels, XXXX and as As dividend

year overall is centered revenue provides is revenue growth the midpoint. growth to revenue Constant XXXX constant with and long-term X.X%, in of currency guidance currency about specifics to expected mortgage and Slide middle to XX.X% full growth our framework. provided at X% is organic the expected revenue at of be Total adjusted of which XX% our organic from full XX we guidance, unchanged in the is growth mortgage EPS year about April XX% our in market. in grow decline non-mortgage over XXX organic should to XX% grow Non-mortgage revenue. growth the Workforce USIS. about revenue over growth strong strong points of framework. our within with Solutions despite non-mortgage dollar is FX continued in long-term growth Verification very organic This the negative and constant basis business is over XX% led improving International Services with X%, U.S. the by

we earlier, of XX.X%, over are Mark As down share. margins, EBITDA to adjusted earlier this at we maintaining $X.XX expected discussed the EPS are year. from discussed per the midpoint however, be XX%

very As good on progress migrations. making cloud Mark discussed, we are

quarter up had completing we a than to planned. later they're However,

As our savings a Partially due which timing result, cloud depreciation. cost to lower EBITDA. this offsetting impacts is negatively are XXXX, impact lower in

these As and impact of only impact completion, XXXX timing expect effects savings do we are cost not the and they XXXX to achieve beyond. in

guidance BU USIS margins in year EBITDA discussion. with with my exception shared was Full impact April, the International what is principally consistent the of and on per previous

Non-mortgage Workforce for EWS talent be revenue is non-mortgage the solutions. EWS X% expected margins revenue be Solutions up be driven X% over about expected up government revenue Mortgage up XX%. about are and with XX%, year. be growth XX%. about should revenue by should to down Verifier to

growth up over XX revenue expected should up be about USIS revenue points expected the year-to-year. from our up non-mortgage April guidance. be we of from be about margin about down X% XX%. X% X% year-to-year half XX%, first basis XXXX. in is Mortgage revenue EBITDA be USIS of to should the saw to is

in about XX% over is guidance. benefit our up expected And are to which be is from April be constant currency. XX% constant expected XX% acquisition of to margins revenue in the currency, expected BVS. to of includes approach XX.X%, in organic EBITDA up Revenue down International the

for adjusted over billion, year EPS, million XQ of XX% guidance and midpoint midpoint and 'XX revenue EPS And up the implied $XX 'XX year-to-year XX% year-to-year. it's and is 'XX our for sequentially. adjusted the $X.XX Using per revenue XQ $X.XXX share, up for fiscal

strong 'XX in certainly by variable from XQ the this half drivers at strongly royalties also adjusted follows. revenue margins expected has sequential as very relative sequentially. improvement much costs driven and due growth sequentially sequentially the should The improved purchased mortgage higher are is much in and About improvement 'XX margins requires drive revenue to non-mortgage mortgage. The be improvement our of principally to XQ as mix file EPS substantial and is high Revenue Mortgage grows to in margins. of execution. revenue lower data declines non-mortgage

the also drive due development lower and COGS cloud expense. America and North X/X are completion improvement. of lower reductions to Cost reductions in Europe, of cost about principally expense migrations and These resulting in

'XX. In addition of migrations, XQ we on profit, benefit execute Items below to represent cost the to which the expense completion also continue the principally fixed reductions XX% will taxes, order from and improvement. cloud operating of of cost benefit

Capital year-to-year. the expenditures $XXX the for guidance, migrations is Cloud million XXXX, I reduction million, year-to-year are expected $XXX almost of first XXXX timing million, half the April referenced. up about about to CapEx of reflecting is of completion $XXX of our be This down the a million. Equifax from that which just $XX In to was

complete. We the to expenditures the second expect capital in half decline I previously discussed further as tech transformation activities

market XX% average mortgage as the to levels. discussed of is below its on April, in historic U.S. order Slide inquiry Turning we and the XX,

in deliver its of of As norms, opportunity none and beyond, guidance. the annual XXXX reflected towards which revenue Equifax XXXX for the EBITDA over At on into our order $X that and of this mortgage mortgage in that would to revenue of share current high per margins, of our recovers million $XXX historic billion represents market we billion our expect mortgage $X P&L. $X move over is would

to like I'd Mark. turn over back Now to it

currency John. and Equifax constant strong of XX. execution growth of reflecting quarter model Slide business breadth power Equifax the was revenue end our with against framework, upper delivered and XX% EFXXXXX XX% the another revenue growth, long-term the Wrapping strategic to X% priorities. our Thanks, which on strong up at

XXXX. strong XX% broad-based give half second XX.X% we strong us very EWS growth Our as Non-mortgage VI of Verifier record revenue EWS XX% active momentum enter the growth, and

our enhance bolt-on for expand expansion, intensity, well global M&A, as flow our priority big drive and significant share A markets, dividend for cloud will free America our is XXXX cash competitiveness, our as of repurchases. which complete capital North transformation growth portions to our margin reduce

Completing in for the migrations a milestone is USIS consumer cloud few Equifax. the weeks next significant

as allowing to to with $XXX long-term to us in about of X.X% to revenue XXXX our milestone exit X% of We decrease focusing XXXX, New under in XXXX a is we the further X% of to CapEx Equifax by goal year. XX% million revenue big towards CapEx towards expect team continue of next can Cloud move the reductions fully on Entering Equifax so move in with revenue Equifax growth.

priority to way our care offense and AI we us more strategic in centers the with the scores our ingest investments we EFX.AI. way at EFX.AI. consumer EFXXXXX models, to significant Data and products in build is operate changing Fabric develop through machine and on Single Equifax drive are innovation learning -- products, our effectively. and We're new allowing higher-performing cleanse Another data

enable deliver our from next X% businesses entering pivot remain We're drive leveraging to our differentiated the expanded of average growth, of and on long-term cloud data our XX% market-leading accelerated annually to flow growth points us New top and delivering Equifax new new chapter revenue focused will EFX.AI We XX-plus cycle. New margins free start revenue model, and executing on the Fabric beyond. We're capabilities a basis new and that and and leveraging Data will expansion Cloud, higher to that to Single over in our machine cash assets Equifax to Cloud XXXX convinced cash with building returning shareholders margin line. bottom as the Equifax learning we our

Equifax welcome Sam's investor past IR Clegg, call his over within asset the been the He's USIS to team IR community. Good Relations Relations team business a the to and team the in And and to I'd thank is career finance. position turn years. real the we Investor from for news, Investor joining significant I the McKinstry Molly Molly Sam further the Before operator, team. his with over staying is and the the USIS taking to on X a contributions to like

open With questions. up let it me that, operator, for

is first Manav question Our Instructions] a from [Operator Barclays. coming from Patnaik

Congratulations more to its question ending. run I guess, the third quarter? getting fourth now on cost on to tech think a just importantly, should close going quarter, transformation into this own. of rate in guess, is you which My we XXXX this how much that, on of is the help I savings, first baked And was what have just

and consumer same But quarter. to regard to terms quarter the we've savings guidance. the movements and the in script to and Spain the of other going businesses, third some we're done decommissioning, related fourth talked cost their and in think in third completing we've don't American with North the about XXXX we've into in quarter, I baked beginning get fourth thing Mark's transformation in

about... So when talk I

The bulk year. And next of fourth the savings are really quarter. we'll annualization get in that the the of then

Absolutely.

talked the transformations we the the begin quarter in Mark portion and of the significant third in later as until as third. hits get don't transformations fourth a really quarter, about those savings, of start and because the to fourth to decommissionings bridge from completion the in said, So

this run going a huge Manav, in very cloud half years, think I of the years and but appreciate we're and the close our to in that really couple cloud line to in quarter, do has in organization of effort a pointing And XX% leveraging This huge pivoting in also really out. by Canada company And second as as be work. long super to entire the energized then complete the month rev of number over milestone. I you XXXX very, the the ago. USIS you in this weeks finish started strong It's fourth know, to road. or in with XX% X really position. We we the to next a been next it been to the X a cloud be the last it's

there's and left the then or some being of first terms perhaps like half And segment. room from I it? Okay, second minuses like just the the curious I half a on of error guidance, for was you say set looks pluses conservative you've would where way think in fine. the you just broadly, it lot results, across

Yes. to balanced. We be try

We think that of I meet, want put know to out. put lot to a confidence we that. you we and feel we the forecasts out forecast in how know

we in our I of comments, a business. think John positives prepared and We've about always some you some talked challenges, do I, have. the in had

hasn't guide. some seen end first some also in cuts, to of quarter. back, in happen softening has expect quarter in that the USIS in and rate short we the highlighted our we really and of second markets their Mortgage don't come think I

in first in from We've big some half focus cloud the in seen USIS transformation. likely the impacts

commercial versus obviously the mitigate so conversations and those focused just expect We cloud. also commercial team on fully can to be commercial

EWS is performing exceptionally well.

Obviously, about You a in macros by but that look talked strong later will of impacted solve government very other likely and Talent we themselves, had employer benefit at quarter. kind WOTC performance. some that the year, will the XXXX.

we But the year expectations. felt all holding International. in with putting in momentum that there half. like all the we right all together When the had put framework that the businesses, we second just our together, -- above finishing maybe and in performing Strong

JPMorgan. Andrew Your Steinerman coming question from from next is today

First, I second I about that just the was quarter confirm revenue XX%. was want mortgage used. for percentage know word to

for of be comment so the the will multitasking, want I auto I USIS, to guide. heard on also quarter. Mark, the in drag to half on us. and end the August. you And And there. highlighting want second seems dealers second you've talked revenues quarter a I that to about surely know heard at second the CDK, it, cloud That there migration, more And then call behind is, I this into let's us focus month auto acceleration behind question about USIS. the which focus And then the really also just I revenue third specifically was

when little any drags third third looks did change the consumer third guide? have me U.S. about So assumed of what in USIS other the the of USIS that of you mortgage kind about on guide Because guide? thinking revenue health for you quarter a And the outside conservative. to maybe assumptions USIS quarter quarter

XX% your exact to Andrew, the number. was it's question, specific

prepared end some Andrew, on we them. you softening in in USIS, USIS the question in think the continued the -- some late quarter, our We've first of I certainly your heard I in markets in comments, to seen And quarter. know second

talked obviously, You CDK That's behind was us. in a second the about quarter. obviously the impact, late negative

market But for auto. in the softening, example, end

to impact used we've broader, forward payments would very seen high charged, rates, for it, has cars half. we we're And just and in loans slight mortgage that being for seeing impact in consumer the been quarter, second in the auto. a impacted call I where second some some softening are and carried While the with and higher in auto new by demand higher then rates that are

guide. reflected USIS in that's the So

I don't know if you'd else, add John? anything

bit finishing recover about a in quite distraction from we're in to But talked That already the transformation. quarter. come does the start Mark's out transformation third quarter. We just No. of the that, right? again,

So going benefit you're lot quarter. a to not third in of the see

see start and don't to next fourth quarter year. until really You that

are improvements see really until not to again, year. NPI But to USIS. you next get to going in starting are quarter accelerate those fourth You the of

The Balsky Bank question Heather from next is coming America. of from

benefits the the was from tailwind? recognizing seeing implied building that I and the us wanted to you're into EWS biggest to verification broadly mortgage has what start blocks acceleration what's there XQ sequential of and and and to XQ? verification seems market the and through stabilized that. walk or into somewhat quarter. Can thinking XQ, material back trend about the for the what's for XQ Especially you the in you trends kind implied off just implied where EWS be half, with -- fourth some to and from gets And the

Yes.

number right? is significant it's EWS benefiting partners. right, to -- overarching a of half. a to adding come second additions, really four those added related added online, the in records a drives more. partner They've that an in So back coming important online We substantial job statement, and new remember in that We amount we done in quarter. the with Verifier very revenue said, record Mark significantly the late half, the And first had are as substantial an just outstanding half, we have

the yet, we is to record records, to records the into additions out and quarter the John, fourth you. we beauty working them, that they meaningful because already into inquiries. on, you that know, the visibility have. our of they as real turn now we're and in added are with the them so haven't as But in third when and that add haven't look adding come those have system discussions Maybe July closed we point, of we That's we're we -- we quarter. the day revenue And as we getting when online,

ahead. go John, Sorry,

there see get we what We you as obviously, in do generally you're quarter card seasonal banking hiring from quarter traditional to seasonal fourth quarter, strength I-X, fourth where in some talent, in strength hiring third from of problem. onboarding some of right? for Just CLIs. And third No seeing because because fourth into generally is and to around companies.

top ACA gives half year Mortgage, fourth start going into confidence going nice back so Verifier in strength fourth go in through that good I CMS, the the government what in then of generally you growth us on non-mortgage. of we've we're to that's in in importantly, sign-ups see covered. quarter, layer And the we quarter. we see then the and about, records, that think that's the as talked been performance And

we quarter through seeing the we're wrap months we X of impact is, year, quarter, that the occurred that of fourth get what the as the of employer, ERC first decline last around fourth And in we into the saw the significant year.

will So on rate employer substantially revenue be basis, better. growth the year-over-year a

to 'XX. decline the said, in that's expect saw that ERC by we quarter and up declines we relative the fourth As of big the been flat a in slightly that driven seeing, principally to be we we've to fact

about. why that's and opportunities drive say trending good way the EWS I'd about So is revenue we to the growth talking feel the we're

you've where Got I it. in and kind half, stuff of may things the occur, might for caution Do the your given some know a questions in taking couple the bit feel upside. for like been out about of bit guidance that the gotten a quarters. might a of few There's for there yourself transition past be The that room And little the back you WOTC, you've control? some of some be room that, little longer. like, surprises of

that. We're trying to do always Yes.

in Like at just records, last not it's different they're paces. good you would We where that's But Government signed. we we have quickly. about talked place We what on. more by think earlier WOTC visibility the we We high the one have know know year, on. coming when be thought that took As states we the -- easy. often move sometimes went bureaucracies know, change implemented visibility. we

schedules. those of kind have We

you gives a visibility. lot that of So

forecast, to process. -- side. over a rate our wouldn't rates good our a it, mortgage and be into do And on in do as we that's there's we or we don't real news put to 'XX, as forecast. going We tailwind maybe us is the medium forecast. And And come try in cut know, our we elements our September, happens, And expect in term, on for that forecast that's different you half, mortgage, not think our the best the but suggest know, together. to second macro down. it would going of handicap put talk you that you and be what 'XX we would If about increased have outside while to for that's call

you. the we've that's So yes, of put about and forecast, and know minuses pluses we it we in front why into we that think put

the teams and the the it's We that's completing to now, we way right but we visibility And are as have and quarter I and in good going about requires lot confidence fourth mean, transformations. right, in know how script, a referenced complete, of Mark around obviously, the of execution, talked to third we timing. the executing into have we very a lot think

next Kelsey Your Zhu Research. today Autonomous coming question from from is

more first upcoming have contributed about growth you've as bit little talent. we've if kind how product on really of new I pipeline. much tell the strong seen Obviously, they can this introduced year-to-date, as quarter. to growth, question well is a products was My wondering you us

do them growth? you as, to well As expect to contribute

to talent, large runway just let's big add TAM a use a in Yes, converting a lot Remember, in, but of the there's manual, growth also penetration. verification position employment processes. you it have of we for to that have just that's

of have a operating in million, and data. government. just data other data a is talent When you've lot business like have penetration like in opportunity kind $XXX $X run just But just just we opportunity. medical credentialing incarceration, you a huge penetration the a elements rate TAM, we As $XXX got there's billion-plus million know, education of

those on hourly for the incarceration, screens a employment We've out employment of new with products screen, We of solution chapter for lot big around background of rolled focus have so single an background data et depths a working on which history, also. to much a would the a education, transaction know education, the as history, I different that require next include our is focus there. on required Product that's hourly deliver employment got include cetera. all there's data. big on lever And goal would combining being to a elements, data team's incarceration, don't

vocational We a schools. signed that degrees college and goes and and into announced beyond on new high education school partnership

So that's second another depth part element of half talent. that's on our a of focus

growth a talent we Mark And the drive saw quarter, the out rate. growth of second referenced, very portfolio. helping us the nice in insights Incarceration, as

So for that in us was a growth second nice area the quarter.

helpful. then is Super it. And my Got second question on government.

expansion? also how this that CMS We we going to is And quarter? quarter. by saw really rate a forward? sustainable are that about one-off driven any growth factors growth of there this And should growth much contributed the contract How think strong

question. That's heavy a

continued in penetration me When that. know, John both you That's state drive is at TAM. the resources our in to we've about I of in agency a think really few -- government I you $X in parts biggest mentioned our as and comments, a in level. big add government billion government, Let driver take And into states to penetration. team that that at order the think

think food are and data, for agencies care got whether about you've not that And consumer it health -- childcare services, the our using about in of remember, There's it's services. our these benefits, manually, support. multiple support, still scale services. different base rent I household receiving And U.S. that They're those that support, know the receives you doing support, using XX base a cases, it's data. the social education dozen million are Americans support, most income

$X roughly principally $XXX into. $X verification our about business, over today processing that million think of penetrating we that it really against And manual I'd you've we're billion call TAM, rate income billion got run

very there's as driver, and is one-offs not So in There's penetration that big a we no there. think sustainable. about state --

process. become then in you embedded a workflows and get their You part of that

in the extend contract last As did benefit And our you we with escalators. so of CMS increase know, you we're was built X-year a that's that price September, contract taking still the there. annual as out, point

of So visibility. that's with one lot a

So there kind any are not there. in of one-offs

Anything else you'd in add, government? John,

quite And the vertical is we can and again Government quarter the Workforce Solutions. with, largest we're last think, in business You the tell energized. quarter it's runway. this now largest

the XX% the it's about CAGR. long-term X outgrowing. in was the quarter. question XX% a It it's rate, In obviously Your years, had growth last up

think quarter. I last XX%

Solutions we XX% over growth growth. very XX% So it's to long to XX% strong that government in our expect for Workforce clear framework to XX% total above the for outgrow been kind We've term. had the EWS framework of

lot that a in So we're that's opportunity in lot because investing confidence clearly a business have a we of there. the and of

We'll faster year. 'XX. been we grow through rest We that than this to do But haven't given faster we've and for as than we expect that any clear get it the Equifax the rest guidance of of EWS.

in fact agreement XQ. that growth ACA I a terms sequential sequential second the what quarter, in and that starts I in and quarter. with strong. and into is specifically, with third past. XXXX, we're driven again the pop the and fourth think, consistent then we're from CMS the In CMS of they fourth at were see just think year, by the the in fourth quarter the seeing in And every referenced, And expecting looking in And we revenue XQ -- as heavily very seen quarter we right? we've trends are trends, good

Faiza is from from Deutsche Next question Bank. coming Alwy

Faiza, we you. can't hear

got you now, think. I we Yes,

Is okay? this

Yes. better. that's Yes,

Okay.

Okay.

Sorry about that.

on talked line about ask that. little USIS expecting products wanted that completion. Maybe new [indiscernible] bit revenue So cloud what the Talk a potential acceleration on of just about gains. about the you're to from share confidence your market type

So and around just acceleration. that a bit more confidence color give us

questions, platform said for most consumer transformation and see team. This expect there's we that's the complex been we credit, some that kind no later had. distraction cloud Yes. earlier some question that has 'XX it call that year, XX-year-old ACRO been perhaps our of of 'XX, one to the be in but in the 'XX. And we really to going benefits as of John in There's

couple huge much accomplishment. it just so the the to it's taken To weeks, just be And finishing of team a in bandwidth complete it's that. next from

get So kind beyond. but second of into team 'XX in you we that really and as that the positive have focus we'll should of the the half, one think about is benefiting

of important We've a You really flight going more new levers. pointed out more share customers. our gains always-on And stability, forward. got we a partner lot roll do to ability just out quickly the the We those conversations number us of going valuable and make on. have to believe to of expect a products some in

XX% our I our it's the of is data, than think the speak customers XX% outstanding. speed the just performance, The that feedback acceleration moved feedback super as has today, higher been customers from even moving positive. of The cloud, I we've to the

to was invested stronger you a amount as was of competitive a us And the believed ago, we years substantial one that's money reasons with of X-plus know, cloud customers. the in we it position our going give

really on in to half momentum, those benefits the see some good guys as the start should into But we and there second you 'XX. we get that. be So should

is products big another New deal.

on been As a in goal has the you they've the XX% positive working seen transformation. cloud acceleration We've years some quarter. as number Vitality know, been of for their below our

XXX I bps, and think they were X% is Vitality positive. up which

So the products. for team new is create some bandwidth starting to

coming particularly you'll and data NC+, alternate such out really have we element versus our of which given stuff DataX from and from about. identity combination USIS new every solutions, in USIS. of we're excited see Teletrack. the unique compliance risk-based lot really And A in A data solutions lot competitors, products of data with

lot traction of a So there.

Some coming data products IXI have leveraging our been in wealth marketing out.

file. combine credit P on of for there's example, and that a the my to now is the auto, a lot USIS, in mortgage, the EWS my comments is, I put TWN, the last our I'd -- think the in data, in flag on got used cloud and cloud with in we've then And complete employment delivering I in one loans. complete opportunities credit big focus really file, mentioned comment We on it a products income comments, with

customers of consumer they'll that's know individual pulling So a to when and is that one that That and underwriting there's adds our file, there our value adds credit the solution. the file credit of capabilities also working. our of to an

our file think about credit energized benefit EWS USIS that kind will should And and we're solutions valuable, both more those really which products make share. file businesses, of we credit drive combine that but

XXXX on So likely the that's a focus second product half side, a implementation.

EWS more drive but So stability always-on then And out, we're to competitive going then out really bridging the products USIS roll point that energized around you ability also new will advantage. USIS the and data, forward. as leveraging between the our

thing because that's also in nice I'd add important and we're seeing of deploying our we're That's then Vertex pre-screening only the in growth The is the Ignite and and by proprietary customers. use also platform Ignite our AI. which also

available that to substantially. to expand customers, making use have that we and we're the us it So our allows

adoption the it So feel we're good using Ignite and internally. the fact with us we our customers about very, of seeing with directly that in marketplace developing very products accelerating

the second had is lot we've years, versus just even few side. question And about a quarters, then mortgage of my EWS conversations Obviously, Great. outperformance. inquiries TWN over on last

inquiry here. And thinking of stabilizing, then inquiries, from incremental credit the around us about you that. give lay just curious out EWS or -- sure talked more So and outperformance if of terms about know I maybe HMDA on being mortgage. in TWN came how data And thoughts with week. the land any just the you're I'm just last sort line reflected you've I'm the you in saw of

we terms perform EWS to in relative inquiries. of Mortgage to just how Look, expect

in done really a partners, second significant adding As the again, of about, job we've half them right? lot we're and lot a talked by quarter. of late Mark we nice second a is a adding records, of So boarded the a our about that driven, records, lot talked improvement new of number fact

are that also at the of expecting from going records throughout this driver. really that's benefits rest to the end record in big we from were of quarter EWS the second And the the and record add the we're So added additions see to year. revenue

I again, in earlier just comments. mentioned I'll it earlier And the add one of

When know additions, they have turn into I records, this, already we record think revenue. coming. we add inquiries you the but the

the lever us. as visibility. second such it's really had there have And and we in momentum know, and momentum for a good we've So you on strong also records, signaled powerful we've some half

and do in don't anything had we the We dataset hit higher have inquiries revenue We rates. from get because our they already else just the our have to but become coming records in customers.

some we've products mentioned that marketing approval put to new products, some in in expecting in place the earlier benefits past, we're trying also as We're from the funnel.

going continue the driven is this second So the driver on in year. in do records of rest we EWS to work strong MPI first in what of but well the in we're XXXX expect half half as by continue to of XXXX certainly big performance to to mortgage, the the as of

is Our Surinder question coming from Thind next from Jefferies.

question USIS, just be of a well should us what of a will I should within how above think term? the about we When the And I that the especially cycle. call cycle, like And I'd then to expect entering you've us we about products come period, Or commentary innovation start out? that near with of we that kind the all those would quickly provided, in accelerated innovation? is guess. help through work normal idea

great a it's question. Yes,

on we question, they've meaning commented dampened migrations, years get momentum a their we quarter X when They've bps there. that cloud. really of cloud with I that was even as that momentum the X% second part to the midst XXX of good As the last the heavy on XX% completing in for quarter XX% We we USIS the up energized the X% to all clearly been for to very move in our increased with were the XX% Vitality expect focus Equifax. time 'XX, 'XX, really below they frame, had pick of goal got to that they've the from X to And latter in been goal into or X%. years,

products I transformation. the rattled in by couple the we take second These solutions expect increased off on of that, clearly time the were some a half. the working with they focus. expect cloud they're to next whole that bunch out weeks, and in completion and to new that hampered And of cloud they roll see

quite and have And before. then a we've focus. actually And we combinations, think market. the powerful we we to finish meaning a dedicated team never other also metal be of be leader putting in the that mentioned products, the team kind we product as done they're the -- We've I will only-Equifax big to pedal USIS, working as and the and We on last the solutions have can which bring got going EWS-USIS to dedicated a question, really on the year.

To your see a question you'll the when of benefits. lot about

'XX half. you're revenue positive versus second the They into not XXXX I products acceleration beyond. momentum going happen see coming the quarter, in that in think but will revenue fourth turn to out. be in But may and they'll of

go-forward the sounds it we on firm is out, a tax there's XQ? If that a the beyond the for implied from like benefit basis -- as rate XQ And in margins, on that adjust there well. run right

Yes.

per of terms about, as the that to But on into we Mark get do we into XXXX. we points in nice model, EBITDA XXXX. margins as of see we'll about in you give that talking expect been fact on we've expect margins, and year, XX basis we improvement improvement a XXXX get and talked long-term guidance as So

an get of about that we year. level, as more terms into In exact next we'll talk

just I'd add, John. And maybe

more accretive a to in, level, will normal as see 'XX level. the that margins likely Meaning and some to rates we going that, to positive we're on to mortgage when believe high have drop way. the be down going that think clear to very positive I to rates. And been all change our that's in and beyond it's EBITDA watching XX-plus, we've incremental happens, very very that activity, move when rolling impact starts Fed's in in through as going

is from Blair. question coming Next William Andrew Nicholas from

adds I'm more strong a XXXX A more opportunity And from kind just fostered the if gig if kind be out they number how the just pension wanted that technology, like talk HR lot ask record big some acquire over a to Obviously, and I of a I sales expensive and to Or it's there. relationships those And figure basis? ask years? payroll to staffing can those maybe of the perspective chunky about and why record how really of to of both software trying deals? on one-by-one be year-over-year can count. about is or of you've comparable sequentially. specifically, part

you benefit pension payments, there Yes, it's of or X a Use those relationships. processor almost administrators signed imagine. for defined payroll range, a as kind X pension that whole are might of companies. We've manage pension, like

be, it, a So call like meaning you can chunky, Those think those larger. processor. more payroll about

a around kind just pension records runway pension. long direct We have and in of relationships

lot And local of government pension federal, do might records, police as defined benefit and of state then organizations. corporations Most still have government a some you but departments, the there's majority, still like in Fire the have vast not, imagine, that. pensions. legacy departments, agencies corporations

So how going we're pension. after that's

change may that really work leader. time, opportunity have a records. drive At remember we they had full-time the other dedicated made put in And a works we dedicated to all that's -- a continue on have a for and to December, saw group in he We an our leader, to EWS just leader dedicated tasks you we off, EWS first that is records.

him records. fully asked on we So focus to

So pension. team there's on a dedicated

on We XXXX. have team a dedicated

] which have be call others non-farm team dedicated a W-X HR We software [ processors, and it, or payroll like would on, companies partnerships, payroll that.

our remember And records then come of that business. from relationships also our half we direct through our that get employer

that's is to products in record capabilities ours, So have and new we're of invest those focus relationships. another continuing direct important to

But of gig that's lawyers a XXXX of On different income. It's are remember, some path income-producing we team. big high doctors, very that self-employed Americans operators. dentists, XXXX to and the kind include going dedicated a have

to got you've as like get a go income. indication to estimated So taxes do some their of that prep to tax way quarterly services their

of yes, mix all it's really would across kind different chunky question your of granular? So more and answer three all a that above is, focus the The on about lots avenues some areas say for I records. some of are of

those big after of The on many have different scale, reason on so positive is places. we it the can our got really obvious And so because in for focus we've going able get. a revenue we inquiries, receiving give we which add for We're benefit as those into to customers, they're our higher rates what so the records, translate we're the hit and already we is after. focus

Very very follow-up then I believe. quick helpful. John, a And for for

back guess, lenders don't as, I process? the way that persists and the purchase get all to outperformance stages the tracks buyers mortgage expectation Or inquiry is your that through of of the half? maybe the that, you final the mortgage kind number in -- EWS, kind expectation that, the for about closely talked overall in mortgage inquiry number is gap the underlying of EWS On more the

they're In to it assumed and going trend together. the we've that second half, narrows

it Now a just again, for trends today, right? USIS So similarly, in the that's run based year-on-year we're move we year on inquiries and seeing the our should on the expectations. the based rest on right? and movement looks credit the separately, also basis It's out of TWN seasonality, as percentage apply like in trends inquiries

I see, to see we starting can have we'll longer we have shopping in been behavior mean, narrow, analytically. and right past looks So the also it But where right? it's it to like the sometimes now, expect. than we surprised continues

Meuler question next from Jeff Your from coming is today Baird.

flowing from an cloud was through Investor expansion you when opportunity savings tech the versus into on I period harvest reinvesting margin kind margin cloud thinking be in years to ago, thinking transition like best change current that the increased there complete. transition? few to, Day guess an revenue just outsized was any guess, on a of So what's the going transformation had I after the

have that been. us Yes. And time, we and No We're you've change, well. us you a investing long We're Jeff. know for going through. flow followed to

putting the 'XX, the cloud outsized strategic tech 'XX, et resources, and and our competitive other While long-term been for obvious transformation products we've 'XX, reasons, doing in reasons investments right making the resources, we were commercial new in and cetera. investment in 'XX,

to will incremental amount today margins. grow flow those through to we're expand the right and So the from Equifax investing cloud our savings

the to We're let of Same and reinvest way ongoing bps deliver grow leverage Equifax I'll when about what company. market investing right X% running is that. call amounts that we'll going XX% operating kind that that to XX mortgage the flow through. We're to returns, of we've not at the talked from

allow market to only margins. or And cloud are going point mortgage like they're recovery, as have out, us expand we to as you flow savings, not So our those cost to through. the going

after leverage start pointed with stage to been some we're getting coming closer quite for, cash know, out, that But as shareholders. returning our you John to time, down, we've which as to

you Got it. And was then the ID mentioned fraud this when it softness and quarter. you were describing, I OIS, think

So I'm quickly Correct I'm Midigator? doing Kount that's drove How International if can But guessing for Kount recover? And me it and is what Midigator? that? how and wrong.

Yes.

business So together, call it, actually management, just we if a we Midigator fraud the business, We We and to weakness what the in see portion is, growth. chargeback little look at let's bit let's right? saw saw the better. Midigator take it, was, of call a of part performed of Kount continue which the

Kount, So and XXX expecting right? platform lot that we're platforms in of live. see products to We're new launched now expecting take is -- hold. Kount we've now a

of see see platform, through as we rate expect Kount well. chargeback around we would improved then the around year to there management, improvement performance the expecting And we're XXX management this to move some basically as into as Kount. rest So we chargeback

in performance news see it's a of seeing -- because better the little front the So that new -- rest but of as say fraud us year. we'll better the has business good We're I'd is improved performance the through fraud. go on a given our what margin seeing and products, we're the expectation launch for And margins. that we

Research. from question Wolfe coming from Wurtzel next Scott is Your

notable other of first of back seems from contributing growth. contribution Index decent go to acceleration a It just the were there. positive wanted that was to any notable Just were talent, outliers sequential sequential if and in wondering Vitality to there like but there the there acceleration amount EWS, pretty kind in there

Yes.

principally a outperforming real they As gosh, now, Vitality the EWS X of our after goal you years completed for, It almost XX% has been was know, up. really cloud. kind step

innovation So in all focused verticals on new really they've in broad-based had their products.

out they've they've point products got You more and talent, some in rolled out the pipeline. where

put from place in were And that so there year. some was this of clearly year the late and in half products there last benefit first

Mortgage has got products that they've rolled out.

probably So benefit there. some there's

a they're in I-X marketplace. some we've the While Employer, in. bringing new called that got other Virtual we lapped that's I-X XX, solutions Mortgage they've got solution

focus there. focused new is And got vertical that So products. government has some also on

So towards kind above-framework been they've been well expect execute X energized We'd back quite EWS' of XX%, them the to above innovation. to on over but about it the move it we've call last for ability years. time

USIS we and work. talked innovation as good on quarter cloud had of the about, even midst so did And International in and a their

on on guys it. the to in one of And flooding. International some recently just follow-up And a Got you second mean, as result Brazil the That's growth all quick your at called I past helpful. here? from a that side. wondering of some peers had just out had headwinds quarter any if quarter as during impact

We did.

there's Brazil, and impacted -- right, the of certainly it have substantial in business. was our in south a Brazil, We it and flooding

fairly the plans when performed year. put our place Although we has Brazil actually business we consistently the with started in

XX-month well platforms, the Ignite, and bringing We our other as in We're we're half bringing should close getting we about the just rolling benefit there down with new pleased 'XX Boa the now product and Interconnect, lapping to our solutions. complete and on a that in the that business, from talked mark the Vista's acquiring -- some we're bunch of the path like of we're lapping new second integration in but And solutions the integration. performance. products

Boa growth and about acquisition optimistic opportunity the Vista our quite going we're So for forward.

Kyle from from coming is & Company. today Peterson question Needham Next

to know you off want what on talking Wanted you such, some start and I guys have there. seems just some as if well software as gig strong see records kind I new been growth, of additions. of of the drove guys about could the to partnerships. unpack these HR

net helpful. the guess bigger I that of were new some what the records really you contributors like So if kind rank-order to this be of quarter, would

would broad-based. earlier Yes. it's to similar question, say I

dedicated that. seen I benefits leader to of has which drive that EWS, reporting positive. we driving of fully leader think who's you've really is you're and the the seeing quite I partnerships the those December, Chad. team Joe more made leader And in Muchnick reporting change been a the into just ability strategic of having to think just and

relationships. out, doing four -- It things we're is we add added them. with We we as I-X, with processors. partnerships you those those. are pension We quarter. a broad-based. out, the as new solutions software And from individual of traditional see with they're pipeline administrators, they're payroll see partnerships in point companies, and like pointed other We've WOTC you employer When records and HR with

long roughly, million there's been runway XXX our just framework term. per been think way XXX it, But about momentum given clearly, years, we've of and think outgrowing long we kind working when you growth if lot for X over records, year will, TAM, term, remember, the is north of resources Americans. last We're the for you there's a on long we've focus we just think over forward. records of X about individuals about the what putting X, our X, X, points which of our record dataset, for in the over is a And million And going gosh, growth the it. been X,

kind least CDK to wanted guess, guess, there. first I resolved of maybe for of should XQ think I have That's the It of the pieces up that you guys kind And so about ex at And if auto, some a are auto that so, itself. know that's, just of the how guys we impact? called really year? I impact thinking moving of guess, follow balance -- I week like for XQ, as I of late helpful. or you the on guys seen largely issue. seems you that the out But

Yes.

couple of I auto on rates really that loans it, think we've credit of to tried for quarters, the call we seen, the some auto highlight underwriting. from dampening some last, impact interest higher

in until come second in that don't we've change say So we reflected I the rates down. our expect framework would and to half, that

is Shlomo Stifel. today from coming Rosenbaum question from Next

from some little a understand, get bead from sounds from to of your wanted consumers of what just there? just you to afford Is the deterioration are a is sequentially. there's things? I that some over overall comments loans"? trying deterioration side can't Mark, I saying, the And on it environment. I'm mean, it credit I "Hey, bank the what And the deterioration it seeing consumer

area, of there some a has the up the just that to And impact If you seeing then And give portfolio I review, moving area could some revenue a over financial are us color. the with bit in little of marketing you have growth X%? follow-up.

Yes.

I I we part which, which down strong they're still consumer while what it's of buying outside it impacted it, call Like the bigger think disposable know inflation, the demand. whether fuel, softening on coming of, by subprime their impacted is X-year the or basis, slight subprime some income, been of has consumer, been groceries there's a clearly a it's still is consumer. would consumer

substantially a that months, negative And It's of over where years. couple we've the than car mortgage, mortgage of impact the inventories degree, in you've were are dealers seen last flow in an increase, which probably some purchases. think on car meaningfully got obviously. years couple but the level seen really seen impact auto of a by We saw think and indicator I the higher just higher is they a we've auto, rates rates X of higher really of impacting in ago, payments because rates. with And there the lesser Mortgage, I rates. the of demand to higher you've the much obviously market last a that's around consumer impacting

auto And be in rates, seen are most somewhat move would that, the verticals until along. see probably the to would reduction one of dampened. we've some It's that I other that we think of. kind continuing of expect the I Outside

a customer impact. It's not

Our customers are still strong.

still customers on businesses. their focused Our are growing

end it's consumer demand of side. an think the on more user I So

And then timing the a guidance just reason transition, you was and cutover to of lowered but Great. margin the shouldn't was about the the impact margins, impact some of comment Okay. XXXX made the outlook.

if about number, things XXXX? Why wouldn't think also doesn't of why quarter, understand, kind behind? as that quarter XXXX kind of that a out go a to trying I being into a Just snowball

Yes.

infrastructure months when that's as our still a of at a of those rate, before we're lot the we that there's couple move commented paying John our customers, meaning shut for overlap infrastructures. the But in And think all finish down line infrastructures. transformations. complete we duplicate of decommissioning with I run we're these legacy still those we

have legacy rate The that those other we're of work full come delayed behind, and that But new savings. run Canada couple will 'XX, principally the because that we're the doing say out months cloud few it's and we'll and one infrastructure, out of I a some of pushes in final XXXX. to so of weeks complete would a the USIS, is

'XX. benefit less So we benefit 'XX, in but in get full the have we

question from Your next coming Lau from is Owen Oppenheimer.

it the comments to rate about currently points I in the to So by, even rate going rate cut, to back XX basis year, Mark's may XX start earlier September. market and cut expects this think,

say XX cuts for how all by you year? much incremental benefit about this do think if the do Let's how this capture? basis Fed Equifax you think points, And can

one be estimate tough our going cut a a mortgage principally that's vertical. obviously to to point news, put Fed Yes, actually in there. It's when rates, the on good

would inquiries I we deck think down. would chart down what that are expect activity XX% from that to you saw the recover in come We levels. call as the the normal rates

likely a in come X% are or got a upgrade down before they want home term, homeowners, see to the or kind kind to or of change, X% rates but of make -- the at and mortgage kind waiting macro consumers And that of high that range better move. Xs you've of from the challenges

would lot forward. a that to of not a We there's positive the be So market. on inventory going expect

much we And they're today And we Fed the the are we've United We'll expect pretty which States today. in that's incremental we frame a interest $X.X Fed think, rates for highest, normal. number the States. see are to goes. would to billion versus of that activity normal, how the what from back towards move where characterize over huge revenue, And you rates, United how for globe the as is that if high you in does at that, tried look I the of it the course, XX-year time go

that the time, margin positive they that market and our comes -- believe then over will through financials. our our have P&L been clear and all down recovery from expansion will we'll flow a as free and we we generation certainly or back that drive come It's substantially mortgage believe big into we've that cash

Got it. April. revenue pent-up have In That's saw February? March it market it improved because you last see that from down the continued and talent demand in second you or quarter, remember And was has and helpful. will growth Or up quarter, more then the January recovery X%, XX%. some the in was of I some Was be actually sustainable?

using wins, products. the you solution I kind TAM, getting in some in also, penetration continued think meaning new our John, in jump the top biggest driver that customer just talent, meaning can of -- is waterfall, to they're position, of first of

for would on that, What add John, Talent? you

in insights Well, we some product, some that's we growth education also products. checks. used really And started performance to incarceration around some background saw also nice meaning in see

talked the in terms very then What saw and normal February was quarter in talent hiring. little from support we a weaker saw performance saw we in speaking, that of we the So also got because performance And quarter, about and use last in and are market. we than March. generally employment as better recovery of we weak January but that a we recovery other of products our income because nice some second that also the normal products,

Your next coming Craig from is Partners. from question Research Huber Huber

of, technology stuff, actually on that putting that your here? forward hurting normal your you you're versus dollars the budget, it's discuss, [indiscernible] curious, context spending margin? the would inside within just cloud AI on would, you your technology I'm that are budget and displacing side Can your here, spending doing and that the here, aside just say, spending the normal normally do if going just technology other you you

we spend provides Equifax, and leveraging It's new Google's resources a at growth it our a Vertex products in us and very This and we've own with enhancing big The lever consistently AI. investing, reasons, our AI. believe know. important and ML. No, with been we're I tech then of about there no. is as increasing for I -- around AI for hurting our using think obvious focus don't Yes. transformation AI capabilities but models don't isn't lever that capabilities and margins, what our well, but scores, for

So big us. the is a cloud being in positive for

was investing brought to the been of resources in the we've then And one strong more a from us. to leader I that people. in lead and we're ML business on for customers, excited that really and we he our actually mentioned from have industry, AI

goal this XX% models new our of AI in and scores we're the use the I year of at had seen XX% using a think You've of We expanding. be our AI to And ML. quarter. and

north of a goal, thing. our good which So is

move we're we where we move forward, right? heading. to As That's XXX%, will

the to it's So we of to in And ML. pillars leverage. losses really the data capabilities is is approval this to to businesses. drive and substantially them product validations in is And help USIS, AI fabric what of energized. gives our and a it's in solutions. Data Equifax going number lower strategic have higher customers up predictable. Single identity have our finish rates ability the really our They're big all a We're us the and of with higher big priorities just next that our really the EFXXXXX our be super take them in weeks for identity at deliver big, higher-performing lever, complete and to Cloud one as or going charge to opportunities They'll of

So excited forward. going we're super this priority a about as

a it make of of and ML. capital dramatically across think amount you like fabric all when around about easily spending our into our data getting And accelerates businesses, which AI available is significant to spending,

So need include our other and a doing ongoing to probably would if other you the do, you have what but transformation process we're we're improvements. compare doing way of our because that companies of as it to data part bunch talk ML, about spending to in a spending doing AI in normalization we're companies

and So ML. we're AI on spending substantially

credit the basis. follow-up year-over-year just a there rest again, happened, please, year of my quarter on cards, in the us and there. And outlook what question, just then for first the And on on refresh your second touch

No Yes. second the from half change the in quarter. first

through there's risk where of As card That's run the of went 'XX, dampening space subprime because portion level. meaning flattened really was there consumer. rate of small exposure some a a that's there with in That's in a you subprime. and credit out, cycle the at know, they're credit 'XX kind

behind near So there. that we see then us. business prime, in for it's prime, don't is a real any and the changes good And still us,

lending, it's like the has kind number half. looked Banking higher of digits, second, mid-single been and what the still we first said, growing it's but in in

performance good relatively think there. we So

that half, continue to second like expect you're the You in saying? it

the from We kind XXXX, consumer's you They're strong. of take do. Again, half, take second go working.

prime from they're kind they from have consumer the COVID wage they very consumers, base you seen growth broadly markets. of -- all and strong. the the If have U.S. is think about behavior sheet balance near We've equity growth prime, post spending

a good that's outlook. So

sheets. for them growing. our they have customers want to They important And strong are keep these And balance strong. that businesses are

want them differentiated So can us, to of faster, to USIS businesses marketing they deliver originate. grow the help along and be space card going for good And a their on and for that's if that they're solutions spending FI. in money we the thing continue rest to then

today Next Morgan coming question Kaplan is Toni Stanley. from from

in mortgage I wanted to Verifier. go back outperformance to the

Just know you mix that a up I drivers there? of was a quarter of and than had expectation. to slightly what's that it think on maybe be it last little just quarter, component slightly. led bit expected bit sort there little more any unfavorable? a was just you on worse give I last lower a color Is Could to going like

would we to slight guidance Yes. much right? Toni, thing. same is gave, to the it pretty characterize down consistent Slight with as we close the up

guidance think we the were gave. we with So we very consistent

into I it But we can't So and year, specific, of performance talked the the about we see going us through expect about we're records, half that. point gives that because overall, improved what what consistent we go to fairly because, we times, it anything variances which good a as that where what came it small second some between there multiple in to we right? comfort said. as would is be we was right, feel the why that, with again, of expected, to

organic just growth another Great. the the quarter. like are It there was about And gains strong Or rest I year? for just early? really thinking Okay. is with very of International, LatAm the how organic to you too XX% And it ask then a standout on you share bit this there? looked wanted growth. LatAm seen Have little still

do but grow principal had there In over long quarter, we and outside term LatAm, a is early in the Yes. medium continue that expect to to and driver Brazil business good well, the it's of still Brazil. have Brazil. in America, the But innovation, new of products in markets those markets. markets Chile, most of strong by we leadership the Argentina, and a where in really days lot positions Latin performance driven strong in

just some go quarter was in strong. kind share market very of a you but forward. growing moves recover product innovation. the likely good management Particularly, if we Canada market. across in was we U.K. are digits, But had like above good rest it where Those as which below driving very and International expect them gains strong. very positive products, to was -- U.K. But CRA very was is be, that as Australia new mid-single of International, would performance. across very U.K. to debt another driver they're them above a CRA

full year guidance. we gave And

I a expect again, think on So we in. perspective the where we to gave year come

We expect well. International to perform

quarter, We as be to expect should good. the quite of Not perform LatAm second year rest but the strong as still, the well.

is Tong next Sachs. Your Goldman coming George from from question

non-mortgage of credit conditions in that a USIS saw which impacted earlier an to I the you continuation the point, wanted auto and... business, tight to market go back was

not That's what George. said. not actually ahead. what That's said, I go I But

you are broader the half the credit of second how the in guess thinking I about Yes. conditions year?

'XX auto. clarify, I were happened say in right? tight that There are you that's not old there to a ago, news, ago, years and Just subprime, think in I know. conditions in That 'XX, year did credit as but X

What about And it's view were payment high for we end-user financing higher years now than levels buying the demand a ago. in mortgage. who's a new substantially someone couple last of what follow-on of our car are they of in The see for automobiles, a I quarters. automobiles, for that talked impacting in was couple really rates are financing meaning auto the it

not So underwriting. consumer we think demand, credit that's impacted

just So to that. clarify

what? And I'm sorry, the second half of your question was

In the how are just broadly. year, just in the auto, credit conditions? thinking second half but you of about Not broader

Yes.

is That's consumers always So from unemployment is strong. strong. low. working. still credit are a positive a credit are continuing Employment the high, we for the when consumer be to conditions, Broadly, see scores underwriting

kind and financial strong. of meaning the another we think they're we customers, declines a of I before is with and that's flattened from out other the the impact thing others 'XX about talked in conditions we've subprime, saw 'XX. very think institutions, and on your about lot you credit strength of broadly but And

So are those elements very good.

auto. two substantial, one The demand area we're -- and we're mortgage we've talked about, clearly has areas, impact rates which obviously, in is consumer then seeing impact length some because at seeing been on of

how is it. in is of Got and growth, about from in then growth Verifications? EWS to talk bit a contributing you record particularly And a the lot linked volumes. Can pricing much non-mortgage, additions

Yes.

we're strong, we As And one. as four which have in EWS. you been know, really one. pleased you point Records very is it's is Price levers principal with. out,

As you don't know, lever. price, it's disclose but one we

verticals. George, You into from penetrating penetration, new have we substantial about, should benefits think that meaning

it's think then is I the multiple growth, a different how some you or XX% on bringing that, those historical get a whether more more higher we But market and new think price government then deal, those that the to to solutions deliver of talent product data they're as levers because are weighted XX%. the meaning four generally data, market we've talked others. to term, XX% top bringing point about solutions that and big XX%. more at long in And customers, about And being equally that's over in meaning our value to add value.

strong So we're really energized those have four levers. to

clearly, When businesses. to the very most add records business records than ability that unique you EWS, about -- think to data is

compete lever one don't that and generally as is data that in businesses. don't standpoint value manual with productivity well also we like businesses. competitors businesses, a real as add EWS. to us that that instant is We other with in a it's gives of other the Experian. and compete have we would that standpoint manual penetration I argue don't speed in So we other TU from accuracy from comes Competing opportunity the one with have

Thank you.

the the reached floor like or comments. of to closing have Burns any session. question-and-answer I'd back over end turn We to Trevor for our further

have forward follow-up Molly. Yes. to you. Thanks, their throughout to for reach any time questions, everybody, And up the you Thank if Look me just today. quarter. out catching or

today's teleconference and Thank webcast. you. conclude That does

disconnect may for your you thank a line We have day. this wonderful You participation today. and your at time