CHICAGO, March 31, 2025 (GLOBE NEWSWIRE) -- TransUnion (NYSE: TRU) will publish its financial results for the first quarter ended March 31, 2025, in a press release to be issued at approximately 6:00 a.m. Central Time (CT) on Thursday, April 24, 2025. The company will hold a conference call on the same day at 8:30 a.m. (CT) to discuss its financial results. The press release and a live webcast of the earnings conference call will be available on the TransUnion Investor Relations website at http://www.transu ...

Core Insights - The volume of U.S. data breaches decreased in 2024, but the severity of these breaches reached unprecedented levels since TransUnion began tracking in 2020 [1][5] Data Breach Volume and Severity - In 2024, primary data breaches fell to 2,577 from 2,842 in 2023, while third-party data breaches dropped significantly to 515 from 2,731 [2] - The severity of data breaches increased by 34%, with the primary U.S. Breach Risk Score rising from 4.1 to 5.6 and the third-party score increasing from 4.2 to 5.2 [2][5] Types of Data Breaches - Primary data breaches are direct attacks on organizations, while third-party breaches involve access through vendors or suppliers [3] - The 2024 breaches targeted higher-quality credentials, with consumers facing data harvesting scams across multiple channels [4] Financial Impact on Consumers - A survey indicated that 29% of consumers lost money due to various types of fraud, with a median loss of $1,747 [8] Digital Fraud Trends - Communities and video gaming were among the top industries targeted by suspected digital fraud, with communities experiencing a 12% fraud attempt rate [9][14] - The logistics industry saw the greatest increase in suspected digital fraud volume, up over 100% from 2023 [10][14] Consumer Awareness and Experience - In the U.S., 11% of respondents reported being targeted by fraud, with smishing being the most common scheme [14][15] - Nearly half of the respondents (48%) claimed they were not targeted by fraud, raising questions about awareness [16]

Core Insights - TransUnion has completed a FedRAMP® Ready assessment for its TruValidate™ solutions aimed at helping government agencies protect against fraud [1][3] - FedRAMP compliance is essential for federal contracts utilizing advanced cloud technologies, with various states also adopting these standards [2] - The TruValidate Identity Verification product enhances user experience for legitimate constituents while effectively identifying fraudulent activities [4][5] Company Overview - TransUnion is a global information and insights company with over 13,000 employees operating in more than 30 countries, focusing on providing reliable consumer representations in the marketplace [6] - The company aims to extend its solutions beyond core credit services into areas such as marketing, fraud prevention, risk management, and advanced analytics [6] Product Details - TruValidate offers a suite of configurable applications that leverage high assurance telephony and alternative identity data to meet NIST identity assurance levels [5] - The product is designed to streamline the identity verification process for government programs, reducing the effort required for legitimate users while enhancing fraud detection capabilities [4][5] Compliance and Security - TransUnion is pursuing FedRAMP Certification with a focus on using mature and tested tools, with assessments conducted by a recognized Third-Party Assessment Organization [3] - The company’s data security and compliance infrastructure aligns with the needs of federal and state agencies, facilitating rapid deployment of its solutions [5]

Core Insights - TransUnion Canada is enhancing credit access for new Canadians and those new to the credit market through the TruVision Trended Risk Score, which provides a comprehensive view of payment behavior and creditworthiness [1][9] - The TruVision Trended Risk Score utilizes new algorithms and data to better predict future risk for New-to-Credit consumers, enabling lenders to confidently offer credit [1][2] Group 1: Market Trends - New Canadians and young consumers are a significant part of Canada's population growth, with international migration accounting for 92% of growth in Q3 2024 [2] - In 2024, New-to-Credit consumers represented 28% of new credit cards opened and 22% of all credit products, with new Canadians estimated to account for over half of that volume [2] Group 2: Consumer Behavior - Gen Z Canadians, born between 1997 and 2012, are the fastest-growing segment in credit card usage, showing an 18% year-over-year growth in balances, with total credit balances reaching $142 billion as of December 2024 [3] - This generation's credit balance growth significantly outpaces the overall growth rate of 4.5% [3] Group 3: Risk Assessment - Gen Z consumers exhibit a higher risk profile, with a delinquency rate of 0.57%, compared to an average of 0.28% for other generations as of Q4 2024 [4] - Lenders can still target this demographic for growth by employing effective credit decisioning tools to manage associated risks [4][5] Group 4: Strategic Insights - In a challenging macroeconomic environment, lenders are encouraged to modernize credit strategies to extend credit to young Canadians and new immigrants [5] - Companies that adapt to rapid changes in consumers' financial health will be better positioned to capture emerging consumer segments [5]

Core Insights - The phone remains a critical tool for businesses, with 86% of decision-makers agreeing it is the most important outbound channel for customer service and revenue growth [1][2] Study Overview - The study surveyed 719 decision-makers responsible for outbound call strategies, highlighting issues such as inaccurate customer contact data and call spoofing threats [2][11] - Compared to 2022, companies made 26% fewer calls while increasing the use of digital channels, yet the phone is still preferred for urgent customer service and personal matters [3][7] Importance of Communication Solutions - 75% of decision-makers believe accurate caller information is vital for enhancing customer engagement and increasing answer rates [4][5] - Key features for improving customer engagement include accurate caller ID (75%), protection against call spoofing (67%), indication of authenticated calls (62%), and displaying logos on outbound calls (58%) [5] Fraud and Call Spoofing Concerns - 80% of decision-makers reported an increase in customer service inquiries due to call spoofing, leading to higher operational costs [6] - 72% observed a decline in customer trust due to call spoofing, negatively impacting retention [7] - 55% of decision-makers indicated their current technologies lack adequate protection against call spoofing, an increase from 38% since 2022 [7] Recommendations for Improvement - Businesses can enhance customer experience by focusing phone use on urgent and personal matters and respecting individual contact preferences [8]

Core Insights - A significant majority of dating app users express a desire for improved verification of user information, with 85% of women and 87% of men advocating for verification of details such as age, photo recency, and location [1][3] - The report highlights a discrepancy between online profiles and real-life appearances, with users reporting misleading photos and age misrepresentation [2][6] - There is a strong willingness among users to undergo background checks, with over 75% open to this idea, indicating a demand for enhanced trust and safety measures in online dating [3][6] User Concerns and Preferences - Users are particularly concerned about the accuracy of profile representations, with women more likely to report age misrepresentation and men more frequently experiencing bait and switch tactics [2][6] - A high percentage of users (79% of women and 81% of men) want platforms to verify age, while 64% of women and 61% of men want verification of photo recency [5] - Approximately 28% of users have experienced catfishing, and 21% have fallen victim to romance scams, underscoring the prevalence of fraud in online dating [7][8] Opportunities for Dating Platforms - Dating platforms have the potential to enhance user trust and loyalty by implementing identity verification tools, which could also serve as a new revenue stream [4][5][8] - The report suggests that users are willing to pay for background checks, with nearly 40% expressing a willingness to cover costs for both themselves and potential matches [5] - By leveraging identity data for verification, dating platforms can not only protect users from scams but also facilitate genuine connections [8]

Core Insights - The analysis by TransUnion indicates an elevated risk of tax refund theft in 2025, with 970 data breaches reported in 2024 that compromised personally identifiable information (PII) necessary for tax fraud [1][2] - A total of 640 million consumer records were exposed in 2024, with full Social Security numbers being exposed in 71% of breaches in the first half of 2024, a significant increase from 57% in 2023 [2] Government Agencies - Government agencies, including the IRS, are urged to be vigilant against fraudsters who may impersonate victims or validate stolen identity information through call centers and online portals [3][4] - The implementation of identity verification and document authentication technologies is recommended to detect impersonators, especially those using AI-generated credentials [4][5] - Agencies should consider using branded calling tools to proactively notify taxpayers at risk of fraud, as 62% of consumers are unlikely to answer calls from unrecognized numbers [5] Financial Institutions - Banks and financial institutions are advised to verify that payees match account owners to prevent fraudulent tax return claims [6] - Institutions should scrutinize new deposit account openings for potential fraud and protect existing accounts from takeovers [7] Consumer Protection - Consumers are encouraged to monitor their bank account activity and credit history, especially around the time their tax refund is due, to detect any unauthorized activity [8] - Utilizing credit monitoring services can help consumers identify if fraudsters have opened new accounts in their name [8]

Financial Data and Key Metrics Changes - In Q4 2024, revenue reached $90.1 million, a 40% increase year-over-year, exceeding guidance by 6% [63] - Contribution ex-TAC for Q4 totaled $54.4 million, up 28% year-over-year, and 3% above guidance [64] - For the full year 2024, revenue totaled $289.2 million, a 30% increase over 2023, with adjusted EBITDA rising to $44.4 million, up 53% year-over-year [60][61] Business Line Data and Key Metrics Changes - CTV ad spend increased over 40% in 2024, accounting for over 40% of total ad spend on the platform [14][68] - The number of customers generating significant levels of contribution ex-TAC increased by 42% year-over-year [65] - Direct access CTV ad spend increased nearly 70% in 2024, representing over 50% of total CTV ad spend on the platform [47] Market Data and Key Metrics Changes - CTV accounted for over 40% of ad spend on the platform, with a notable increase in demand for addressability and measurable insights [14][18] - Political spending contributed just over 3% of total contribution ex-TAC in Q4, consistent with previous quarters [67] - The overall market for programmatic advertising is projected to grow approximately 13 to 14% in 2025 [78] Company Strategy and Development Direction - The company is focused on enhancing its CTV targeting and measurement capabilities through acquisitions like Iris TV and Locker [79] - Viant aims to leverage AI technology to improve advertising efficiency and effectiveness, with plans to roll out AI measurement and analysis in Q2 2025 [33][82] - The strategy includes positioning itself as a leader in addressability and measurement across all channels of the open Internet [22][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by CTV proliferation, leadership in addressability, and AI innovation [12][38] - The company anticipates that the shift of ad spend from linear TV to CTV will accelerate, with a total addressable market for CTV expected to grow significantly [44] - Management highlighted the importance of enabling publishers to utilize their first-party data effectively in the advertising ecosystem [92] Other Important Information - The company ended Q4 with over $205 million in cash and cash equivalents, with no debt [73] - The acquisition of Locker is expected to enhance the company's identity and addressability solutions, contributing to long-term growth [25][79] - The company has a share repurchase program in place, having purchased 2 million shares of Class A common stock [75] Q&A Session Summary Question: Can you explain the logic behind the Locker acquisition? - Management explained that Locker reduces friction in integrating household ID with publisher identity, making it easier for publishers to utilize their first-party data [87][92] Question: How much revenue did Iris contribute in the quarter? - Management indicated that Iris contributed about 1% of total revenue in the quarter [100] Question: What is the strategic fit of the Locker acquisition? - Management stated that Locker is primarily aimed at accelerating the adoption of household ID and Iris ID while serving as a utility for the open Internet [105] Question: How has the market been performing post-election? - Management noted that there is a mixed bag in the market, with significant exposure to display advertising being a weakness, but overall, they experienced strong performance [114][116] Question: What are the expectations for scaling Viant AI in 2025? - Management highlighted that Viant AI is expected to increase wallet share and attract new customers due to its efficiency in planning and executing campaigns [130]

Financial Data and Key Metrics Changes - In Q4 2024, the company exceeded guidance on revenue and adjusted EBITDA for the fifth consecutive quarter, with revenue growing 9% on an organic constant currency basis, surpassing the 6% to 8% guidance [6][48] - Adjusted EBITDA increased 16% on a reported and constant currency basis, with an adjusted EBITDA margin of 36.5%, up 230 basis points [49] - Adjusted diluted earnings per share was $0.97, reflecting a 21% increase [49] Business Line Data and Key Metrics Changes - U.S. Markets revenue grew 8% year-over-year, with financial services revenue increasing by 21% [51] - Consumer Interactive revenue declined 11% due to a large breach win in the prior year, while excluding this impact, revenue still decreased due to the direct channel [55] - Emerging verticals grew 4%, led by double-digit growth in insurance [54] Market Data and Key Metrics Changes - International revenue grew 12% on a constant currency basis, with India growing 18% [57] - The U.S. credit market conditions remain subdued, with mortgage originations at low levels not seen since 1995 [18] - The Indian consumer credit market is expected to grow modestly in 2025, with a guidance of roughly 10% growth [60] Company Strategy and Development Direction - The company aims to deliver consistent results in a subdued market while focusing on transforming its operating model, modernizing technology, and accelerating innovation [12][13] - Strategic priorities for 2025 include strengthening the global operating model and completing technology transformations in the U.S. and India [13][14] - The company plans to expand its freemium credit management offering in collaboration with Credit Sesame, targeting the multibillion-dollar market [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook, assuming muted but stable lending activity in the U.S. and not anticipating significant improvements in credit volumes due to interest rate conditions [15][66] - The company expects to achieve 4.5% to 6% organic constant currency revenue growth in 2025, with potential upside when U.S. credit market conditions improve [83] - Management highlighted the importance of maintaining a conservative approach to guidance, reflecting the current market conditions [91] Other Important Information - The company prepaid $45 million in debt during Q4 2024, totaling $150 million for the year, and successfully refinanced over $2.3 billion of term loans [9][10] - A new $500 million share repurchase program was authorized, replacing all prior repurchase authorizations [79] Q&A Session Questions and Answers Question: How does the company reconcile its conservative guidance with current market conditions? - Management indicated that while market conditions are stable, they remain muted compared to longer-term origination patterns, hence the prudent approach to guidance [91] Question: What is the expected performance of Consumer Interactive revenues in 2025? - Management noted that the new freemium offering is expected to enhance growth in both direct and indirect channels, providing a strategic reset for the consumer business [96] Question: What visibility does the company have regarding growth in India? - Management acknowledged the slowdown in the Indian market due to regulatory actions but expressed optimism for a potential thawing in the consumer credit market throughout 2025 [100]

Economic Outlook - The U.S. economy demonstrated resilience in 2025 with moderated inflation, stabilized borrowing costs, strong consumer spending, and steady stock market gains as it transitions into 2026 [1] - A new policy landscape, evolving Federal Reserve decisions, and ongoing tariff impacts are expected to influence the economic outlook for 2026 [1] Mortgages - Mortgage interest rates are predicted to decrease gradually in 2026, with the 30-year fixed rate expected to remain above 6%, except for a forecasted drop to 5.9% in Q4 2026 [2] - Home construction is increasing, leading to an expected 8.9% rise in home inventory and a 1% decrease in rent prices in 2026 [3][5] Housing Market - While some areas are seeing a decline in home prices, overall housing prices are expected to increase in most U.S. regions in 2026, albeit at a slower pace than during the COVID-19 pandemic [4] - The combination of more inventory and lower sales prices may benefit homebuyers in 2026, allowing potential buyers to save for down payments while rents decline [5] Investment Landscape - Investors are questioning the substantial investments in AI infrastructure as the U.S. economy faces pressures from rising prices and unemployment, but declining interest rates could support corporate earnings and higher gold prices [6] - The S&P 500 is expected to yield modest returns in 2026, with an average annual return of about 7% and earnings growth projected to exceed 12% [7] - Small- and mid-cap stocks may outperform in 2026, particularly in technology and finance sectors, driven by earnings and innovation [10] Gold Market - Gold's value increased over 50% in 2025, and this upward trend is expected to continue into 2026, with projections reaching $5,000 per ounce by the end of the year [11] Banking Sector - A shift towards digital-first banking is anticipated in 2026, with increased competition in AI and fintech reshaping customer service [13] - The Federal Reserve is expected to implement further rate cuts, potentially lowering interest rates on credit, loans, and deposit accounts [15] Consumer Credit and Loans - Consumer credit and household debt reached record levels in 2025, with total debt balances increasing by $4.44 trillion since the end of 2019 [18] - The personal loan market expanded significantly, with unsecured personal loan balances reaching a record $269 billion in 2025, a trend expected to continue into 2026 [19] Student Loans - The return to repayment of federal student loans in 2025 caused a spike in delinquencies, and new policies in 2026 will introduce lower borrowing caps and fewer repayment plans, impacting future borrowers [21][22][23] Insurance Industry - Auto insurance rates may decline for qualified drivers in 2026 due to safer car technology, while homeowners insurance premiums are expected to rise by 16% [24][26] - The use of AI in insurance underwriting is predicted to expand, enhancing risk assessment and claims processing [27]