Transunion · NYSE:TRU
Transunion — Q1 2023 Earnings Presentation
27 slides from Transunion's earnings presentation, Apr 25, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings Chris Cartwright, President and CEO Todd Cello, CFO April 25, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertai
Slide 3: Agenda
1 Economic perspectives and financial highlights 2 Neustar integration progress 3 First quarter 2023 financial results 4 Second quarter and full-year 2023 guidance © 2023 TransUnion LLC All Rights Reserved | 3
Slide 4: Economic conditions across TransUnion's markets
Economic conditions across TransUnion’s markets Inflation and interest U.S. consumer credit rates elevated in U.S., Emerging markets demand remains Lending institutions Canada and U.K., growth continues with healthy. Employment tightening credit pressuring consumers loan volume increases and wages r
Slide 5: First quarter 2023 highlights
First quarter 2023 highlights 8th straight quarter of Revenue, Adjusted EBITDA 2% organic revenue double-digit International and Adjusted Diluted EPS all growth* excluding U.S. revenue growth,* led by exceeded guidance mortgage India, Asia Pacific, Africa and Latin America Neustar integration tracki
Slide 6: Neustar delivering strong financial results
Neustar delivering strong financial results • All three product lines contributed to Q1 revenue Financial results growth ► Q1 2023: ~3% revenue – Acceleration throughout 2023 supported by strong bookings growth versus 9% • Cross-selling momentum building across verticals growth in Q1 2022 – Several
Slide 7: TransUnion + Neustar integration and innovation roadmap
TransUnion + Neustar integration and innovation roadmap to create meaningful shareholder value Unified Enterprise Data Customer Infrastructure Data Product Identity & Analytics Analytics Consolidation Integration Consolidation Graph Platform Enablement Migrated to Increased identity Deploying Expand
Slide 8: Consolidating TransUnion and Neustar products onto market-leading platforms
Consolidating TransUnion and Neustar products onto market-leading platforms Marketing Communications Fraud • Expand TruAudience • Scale Trusted Call • Build comprehensive Fraud – Combined expansive consumer Solutions (TCS) platform data, advanced identity – $50M in 2022 revenue, growing – Bringing t
Slide 9: TruPortfolio unifies dozens of brands into lines
TruPortfolio unifies dozens of brands into 7 lines — defined by business need Previous Today Marketing Consumer Engagement Fraud Prevention Investigation DriverRisk Risk Management Communications ResidentScore …and many more Advanced Analytics © 2023 TransUnion LLC All Rights Reserved | 9
Slide 10: 2022 Diversity Report and 2022 Sustainability Report now available
2022 Diversity Report and 2022 Sustainability Report now available on our website © 2023 TransUnion LLC All Rights Reserved | 10
Slide 11: Consolidated first quarter 2023 highlights
Consolidated first quarter 2023 highlights Reported Y/Y ($M) Change ►Organic constant currency Revenue $940 2% revenue growth, excluding mortgage, of +2% Organic Constant Currency Revenue 2% Adjusted EBITDA $322 (4)% ►Excluding Argus, organic Adjusted EBITDA margin of Adjusted EBITDA Margin 34.3% (2
Slide 12: U.S. Markets first quarter 2023 highlights
U.S. Markets first quarter 2023 highlights ►U.S. Markets organic revenue growth (ex-mortgage) of +1% Reported Reported FX Inorganic Organic Constant ►U.S. Financial Services ($M) Y/Y Impact Impact organic revenue (ex- Currency mortgage) was flat ▬ Auto grew +8% Revenue $620 3% — (3)% 0% ▬ Card flat
Slide 13: Consumer Interactive first quarter 2023 highlights
Consumer Interactive first quarter 2023 highlights Organic Reported Reported FX Inorganic ($M) Y/Y Impact Impact Constant ►Modest growth in indirect Currency channel offset by continued declines in direct channel Revenue $142 (5)% — — (5)% ►Adjusted EBITDA margins of 49.2%, up 310bps YoY, driven by
Slide 14: International first quarter 2023 highlights
International first quarter 2023 highlights Reported Reported FX Inorganic Constant ($M) Y/Y Impact Impact Currency ►India revenue growth driven Revenue $197 3% 9% — 12% by consumer, commercial, fraud and direct-to-consumer Canada 31 2% 7% — 9% Latin America 29 5% 7% — 11% ►Both Canada (+9% constant
Slide 15: Intend to deleverage and use excess cash for debt prepayment
Intend to deleverage and use excess cash for debt prepayment Leverage Ratio1 4.3x 4.1x 3.9x 3.8x 3.8x 3.4x 3.5x 3.5x <3.5x 3.1x 3.1x <3.0x 2015 IPO 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 2023F 2024F • Roughly $5.6 billion of debt and $439 million cash at quarter-end • $75 million of debt pr
Slide 16: Second quarter 2023 guidance
Second quarter 2023 guidance Reported Revenue: $948M to $958M Flat to +1% ► Revenue: International Assumed M&A contribution: No impact expected to again deliver strong growth Assumed FX contribution: ~(1)pt. headwind Organic Constant Currency Revenue: +1% to +2% Assumed mortgage impact: ~1pt. benefi
Slide 17: Full-year 2023 revenue guidance
Full-year 2023 revenue guidance Reported Revenue: $3.825B to $3.885B +3% to +5% Market Assumptions Assumed M&A contribution: <1pt. benefit ► Maintaining FY guidance Assumed FX contribution: ~(1)pt. headwind despite Q1 outperformance to account for uncertain Organic Constant Currency Revenue: +3% to
Slide 18: Full-year 2023 Adjusted EBITDA, Adjusted Diluted EPS and other guidance
Full-year 2023 Adjusted EBITDA, Adjusted Diluted EPS and other guidance Adjusted EBITDA: $1.388B to $1.421B +3% to +5% Assumed FX contribution: ~(1)pt. headwind ► Raised Adjusted Diluted EPS Adjusted EBITDA margin 36.3% to 36.6% guidance by $0.03 for $75 million debt prepayment in Q1 Adjusted EBITDA
Slide 19: Exceeded Q1 guidance, led by strong growth in International
Exceeded Q1 guidance, Drove meaningful Maintaining 2023 led by strong growth in progress in Neustar guidance to account for International integration, including continued market strong cross-sell wins uncertainty and data and technology integration milestones © 2023 TransUnion LLC All Rights Reserve
Slide 20: Q&A
Q&A © 2023 TransUnion LLC All Rights Reserved | 20
Slide 21: Appendices: Non-GAAP Reconciliations
Appendices: Non-GAAP Reconciliations © 2023 TransUnion LLC All Rights Reserved | 21
Slide 22: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended $ in millions March 31, As a result of displaying amounts in millions, rounding differences may exist in the tables and 2023 2022 footnotes. Reconciliation of net income attributable to TransUnion to consolidated 1. Consisted of stock-bas
Slide 23: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS Three Months Ended $ in millions, except per share data March 31, 2023 2022 As a result of displaying amounts in millions, rounding differences may exist in the table and footnotes. Reconciliation of net income attributable to TransUnion to Adjusted Net Income: 1
Slide 24: Adjusted Diluted EPS
Adjusted Diluted EPS Three Months Ended March 31, As a result of displaying amounts in millions, rounding differences may exist in the table and footnotes. 2023 2022 1. Consisted of stock-based compensation, including amounts which are cash settled. Reconciliation of diluted earnings per share from
Slide 25: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Three Months Ended March 31, As a result of displaying amounts in millions, rounding differences may exist in the table. $ in millions 1. Tax rates used to calculate the tax expense impact are based on the nature of each item. 2023 2022 2. For the three months ended March
Slide 26: Leverage Ratio
Leverage Ratio Trailing Twelve Months Ended As a result of displaying amounts in millions, rounding differences may exist in the table above. $ in millions March 31, 2023 1. Consisted of stock-based compensation, including amounts which are cash settled. Reconciliation of net income attributable to
Slide 27: Adjusted EBITDA and Adjusted EPS Guidance
Adjusted EBITDA and Adjusted EPS Guidance Three Months Ended Twelve Months Ended $ in millions, except per share data June 30, 2023 December 31, 2023 As a result of displaying amounts in millions, rounding differences may exist in the table above. Low High Low High Guidance reconciliation of net inc