Equifax Inc. (NYSE:EFX) Q4 2024 Earnings Conference Call February 6, 2025 8:30 AM ET Company Participants Trevor Burns - Senior Vice President, Head of Corporate Investor Relations Mark Begor - Chief Executive Officer John Gamble - Chief Financial Officer Conference Call Participants Jeff Muller - Baird Manav Patnaik - Barclays Andrew Steinerman - JPMorgan Toni Kaplan - Morgan Stanley Faiza Alwy - Deutsche Bank Kyle Peterson - Needham Craig Huber - Huber Research Partners Jason Haas - Wells Fargo Owen Lau - ...

Core Insights - Equifax Inc. reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2] Financial Performance - Adjusted earnings were $2.12 per share, surpassing the Zacks Consensus Estimate and reflecting a 17.1% increase year-over-year [2] - Total revenues reached $1.4 billion, missing the consensus estimate by 1.5% but growing 6.8% year-over-year [2] Segment Performance - Workforce Solutions segment revenues totaled $598.1 million, a 7% increase year-over-year, but missed estimates [3] - USIS segment revenues were $472.5 million, growing 10% year-over-year and beating expectations [4] - International division revenues amounted to $348.8 million, up 3% year-over-year, but lagged projections [5] - Latin America revenues increased 1% on a reported basis and 29% on a local-currency basis [6] Operating Results - Adjusted EBITDA for Q4 2024 was $501.9 million, a 12.5% increase year-over-year, with an adjusted EBITDA margin of 35.4% [7] - Workforce Solutions' adjusted EBITDA margin improved to 51.9% from 51.2% year-over-year [8] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q4 were $169.9 million, down from $468.2 million at the end of Q3 [9] - Long-term debt decreased to $4.3 billion from $4.7 billion in the previous quarter [9] - Cash generated from operating activities was $324.8 million, with capital expenditures totaling $118.9 million [9] Guidance - For Q1 2025, Equifax expects revenues of $1.39-$1.42 billion, lower than the Zacks Consensus Estimate of $1.51 billion [10] - For 2025, revenue guidance was raised to $5.89-$6.01 billion, but still below the Zacks Consensus Estimate of $6.28 billion [11]

For Equifax, macro headwinds from a job market slowdown and the volatile mortgage market — where uneven loan demand has been a hallmark amid relatively high interest rates — have impacted top-line momentum and forward-looking guidance.As discussed during an earnings call with analysts Thursday (Feb. 6) and reported in a company presentation, the fourth quarter was pressured by those trends. Revenue growth slowed to 7% year on year but had been 9% as recently as mid-year.Forward-looking guidance took note of ...

Equifax (EFX) reported $1.42 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 7%. EPS of $2.12 for the same period compares to $1.81 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.44 billion, representing a surprise of -1.46%. The company delivered an EPS surprise of +0.95%, with the consensus EPS estimate being $2.10.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

Financial Data and Key Metrics Changes - In 2024, revenue increased by almost 8% on a reported and organic constant currency basis, aligning with the long-term growth framework of 8% to 12% [7] - Adjusted EPS was $7.29 per share, up over 8.5% compared to the previous year [7] - Free cash flow reached $813 million, up 58%, with cash conversion at 89% [8][51] - Adjusted EBITDA for the fourth quarter was $502 million, marking the first quarter in Equifax's history to exceed $500 million [15] Business Line Data and Key Metrics Changes - Workforce Solutions revenue grew by 7% in the quarter, primarily impacted by lower talent solutions and onboarding revenue due to a weaker hiring market [17] - Government revenue increased by 11%, consistent with expectations, while Employer Services revenue declined by 9% due to the hiring market's weakness [18][19] - USIS revenue rose over 10%, driven by strong mortgage performance, with mortgage revenue up 47% [20][22] - International revenue grew by 11% in constant currency, exceeding the long-term framework of 7% to 9% [25] Market Data and Key Metrics Changes - The U.S. mortgage revenue was up 29% in the quarter but showed a significant decline in late December and January due to rising mortgage rates [13][14] - The hiring market is expected to decline by about 8% in 2025 compared to 2024, with U.S. hard credit inquiries projected to decrease by 12% [28][29] - The dollar's strength negatively impacted revenue by approximately $75 million, affecting the overall growth rate by over 200 basis points [30] Company Strategy and Development Direction - The company is focused on leveraging its cloud transformation to drive growth, innovation, and new product development, with 85% of revenue now in the new Equifax cloud [9][52] - Equifax plans to return capital to shareholders through dividend growth and a multi-year share repurchase program starting in 2025 [8][36] - The company aims to maintain a vitality index above 10% in 2025, leveraging new products and AI capabilities [11][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the U.S. mortgage and hiring markets, which are expected to impact revenue growth in 2025 [28][50] - Despite these challenges, the company remains confident in its ability to deliver organic revenue growth in the long-term range of 7% to 10% as markets normalize [51] - The management expressed optimism about the future of the government business, highlighting a significant total addressable market of $5 billion [86] Other Important Information - The company has made significant progress in cloud data and technology transformation, which is expected to provide a competitive advantage moving forward [9][52] - Adjusted EBITDA margins are expected to increase by about 25 basis points in 2025, despite lower revenue growth levels [39] Q&A Session Summary Question: EWS margin guidance reconciliation - Management noted that the decline in the mortgage market and onboarding costs for new partners are impacting margins, but they expect to return to margin growth as markets recover [56][59] Question: Impact of mortgage and hiring headwinds on growth - Management confirmed that without these headwinds, growth would have been approximately 200 basis points higher, with a significant impact on EPS [63][64] Question: Government business outlook - Management indicated that while there are challenges due to changes in reimbursement programs, they expect government revenue growth to return to double digits in the second half of 2025 [69][70] Question: Mortgage revenue as a percentage of total revenue - Mortgage revenues accounted for 17.7% of total revenues in Q4 2024, with a focus on hard inquiries that correlate with loan originations [74][75] Question: Non-mortgage growth factors - Management highlighted that auto and financial services performed relatively well, but the significant difference in growth rates between quarters was due to strong sales in the previous quarter [80]

Equifax (EFX) came out with quarterly earnings of $2.12 per share, beating the Zacks Consensus Estimate of $2.10 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.95%. A quarter ago, it was expected that this credit reporting company would post earnings of $1.84 per share when it actually produced earnings of $1.85, delivering a surprise of 0.54%.Over the last four quarters, the co ...

Revenue Performance - Fourth quarter 2024 revenue was $1.419 billion, a 7% increase on a reported basis and 9% on a local currency basis, driven by a strong 29% growth in U.S. Mortgage revenue[1] - Full-year 2024 revenue reached $5.681 billion, an 8% increase compared to 2023, with diluted EPS of $4.84, up from $4.40 in 2023[6] - Operating revenue for Q4 2024 was $1,419.4 million, a 7.0% increase from $1,326.5 million in Q4 2023[22] - For the twelve months ended December 31, 2024, operating revenue reached $5,681.1 million, representing a 7.9% increase from $5,265.2 million in 2023[23] - Total operating revenue for Q4 2024 was $1,419.4 million, representing a 7% increase from $1,326.5 million in Q4 2023[26] - For the full year 2024, total operating revenue reached $5,681.1 million, an 8% increase from $5,265.2 million in 2023[35] Earnings and Profitability - Adjusted EPS for the fourth quarter of 2024 was $2.12, a 17% increase compared to the same quarter in 2023[16] - Basic earnings per share for Q4 2024 were $1.40, a 30.8% increase from $1.07 in Q4 2023[22] - Adjusted net income attributable to Equifax for Q4 2024 was $264.9 million, an 18% increase from $225.4 million in Q4 2023[31] - Revenue for the year ended December 31, 2024, was $5,681.1 million, with an operating income of $1,042.1 million[39] - Adjusted EBITDA for the year ended December 31, 2024, was $1,836.1 million, with an adjusted EBITDA margin of 32.3%[39] Cash Flow and Dividends - Free cash flow for 2024 was $813 million, up 58% from 2023, positioning the company to grow dividends and return cash to shareholders in 2025[3] - Cash provided by operating activities for the twelve months ended December 31, 2024, was $1,324.5 million, compared to $1,116.8 million in 2023[25] - Dividends per common share remained stable at $0.39 for Q4 2024, consistent with Q4 2023[22] Revenue Growth by Segment - Workforce Solutions revenue grew 7% in Q4 2024, with Verification Services revenue up 10%, while Employer Services revenue declined 9%[10] - USIS revenue increased over 10% in Q4 2024, driven by a 47% growth in Mortgage revenue[10] - International revenue grew 11% on a local currency basis in Q4 2024, with Latin America showing a 29% increase[10] - Latin America operating revenue for the full year 2024 increased by 32% to $384.9 million, compared to $290.9 million in 2023[26] - Total international revenue for the full year 2024 was $1,354.3 million, a 10% increase from $1,229.0 million in 2023[26] Guidance and Future Expectations - The company expects full-year 2025 revenue guidance midpoint of $5.950 billion, reflecting a 4.7% increase on a reported basis and 6% organic constant currency growth[2] - The 2025 guidance reflects an expected 12% decline in U.S. hard mortgage credit inquiries compared to a 10% decline in 2024[2] - The guidance for Q1 2025 indicates a decline of approximately 13% in total U.S. mortgage hard pull credit inquiries year-over-year[29] Expenses and Liabilities - Total operating expenses for the twelve months ended December 31, 2024, were $4,639.0 million, an increase of 7.1% compared to $4,331.6 million in 2023[23] - Total assets decreased to $11,759.4 million as of December 31, 2024, down from $12,280.0 million in 2023[24] - Total liabilities decreased to $6,839.8 million as of December 31, 2024, from $7,592.5 million in 2023[24] Other Financial Metrics - The adjusted EBITDA for Q4 2024 was $501.9 million, reflecting a 12% increase from $446.6 million in Q4 2023[35] - The adjusted EBITDA margin improved to 35.4% in Q4 2024, compared to 33.7% in Q4 2023[35] - The company recorded acquisition-related amortization expense of $261.1 million for the full year 2024, a 4% increase from $250.7 million in 2023[31] - The company recorded a foreign currency loss of $0.3 million in Q4 2024, a reduction of 77% from $1.3 million in Q4 2023[35]

ATLANTA, Feb. 6, 2025 /PRNewswire/ -- Equifax® (NYSE: EFX) today announced financial results for the quarter and full year ended December 31, 2024. Fourth quarter 2024 revenue of $1.419 billion up 7%, with 9% local currency revenue growth, despite weaker U.S. hiring and mortgage markets. Fourth quarter U.S. Mortgage revenue up very strong 29%. New Product Innovation leveraging new EFX Cloud delivered 12% new product Vitality Index. Workforce Solutions fourth quarter revenue grew 7%, with 10% Verification Se ...

Equifax (EFX) is scheduled to report fourth-quarter 2024 results on Feb. 6, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.EFX has a decent earnings surprise history. It has outperformed the Zacks Consensus Estimate in four preceding quarters, with an average of 3.6%.Equifax, Inc. Price, Consensus and EPS Surprise EFX’s Q4 ExpectationsThe Zacks Consensus Estimate for Equifax’s top line is pegged at $1.4 billion, suggesting an 8.6% rise from the year-ago quarter’s actual. ...

In its upcoming report, Equifax (EFX) is predicted by Wall Street analysts to post quarterly earnings of $2.10 per share, reflecting an increase of 16% compared to the same period last year. Revenues are forecasted to be $1.44 billion, representing a year-over-year increase of 8.6%.The consensus EPS estimate for the quarter has undergone a downward revision of 3.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial esti ...