Equifax(EFX) - 2024 Q4 - Annual Results

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]