Transunion · NYSE:TRU
Transunion — Q1 2024 Earnings Presentation
31 slides from Transunion's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings
Exhibit 99.2 First Quarter 2024 Earnings Chris Cartwright, President and CEO Todd Cello, CFO April 25, 2024
Slide 2: Forward-Looking Statements Non-GAAP Financial Information
Forward-Looking Statements Non-GAAP Financial Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of This investor presentation includes certain non-GAAP 1995. These statements are based on the current beliefs and expec
Slide 3: Agenda
1 First quarter 2024 highlights 2 Spotlight on India First quarter 2024 3 financial results Second quarter and 4 full-year 2024 guidance @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 3
Slide 4: First quarter 2024 highlights
First quarter 2024 highlights Revenue, Adjusted Organic constant U.S. Markets 12th straight Key milestones EBITDA and currency revenue +7%, led by quarter of achieved on Adjusted Diluted +8% or mortgage, double-digit transformation EPS exceeded +5% excluding Insurance, Media, International program g
Slide 5: Achieved key transformation milestones in Q1
Achieved key transformation milestones in Q1 Reinforced confidence in delivering expected ~$65M of savings in 2024 and $200M of FCF benefit in 2026 Optimize Operating Model Modernize Technology Capabilities Centralize, standardize and automate Drive savings and accelerate innovation common global fu
Slide 6: India
INDIA © 2024 TransUnion LLC All Rights Reserved | 6
Slide 7: Growing with India, one of the most attractive markets
India Growing with India, one of the most attractive markets Fastest growing Market-leading Delivering major economy credit bureau lasting impact #5 global GDP with highest growth TU CIBIL – 20+ years history, Playing a vital role in India's rate; expected to double by 2030 synonymous with credit re
Slide 8: Clear strategy to outperform underlying market in India
India Clear strategy to outperform underlying market in India Adjacencies Product Innovation Client Engagement Market Growth Commercial CreditVision Differentiated Score and Algorithms Fintech GDP: +7.6% YoY1 engagement strategy Consumer Interactive Credit Rank Credit: +15.8% YoY2 Thematic selling t
Slide 9: Delivering consistently strong and diversified growth
India Delivering consistently strong and diversified growth India Revenue ~27% CAGR $219M • Consistent above-market Adjacencies consumer credit growth driven now ~40% by share gains and product of revenue innovation (from 30% in 2018) ~36% • Robust growth in adjacencies CAGR to diversify and expand
Slide 10: Increasing financial inclusion and credit education
India Increasing financial inclusion and credit education Enable credit penetration in critical sectors Other key initiatives Small and mid- ~30% sized business ~63M contribution • Credit education and awareness initiatives to SMBs in India (SMB) to GDP drive financial literacy – Connected to 100M+
Slide 11: India is a multi-decade growth story for TransUnion
India India is a multi-decade growth story for TransUnion On pace to exceed our 2025 target of $300M+ revenue Targeting $500M+ revenue over the next several years (more than doubling 2023 levels) India Significant emerging opportunities – Build solutions for SMBs, agricultural lending, microfinance,
Slide 12: Consolidated first quarter 2024 highlights
Consolidated first quarter 2024 highlights Reported Y/Y ($M) Change Revenue $1,021 9% • Organic constant currency revenue Organic Constant Currency Revenue 8% growth of +8% Adjusted EBITDA $358 11% or +5% excluding mortgage Adjusted EBITDA Margin 35.1% 80bps Adjusted Diluted EPS $0.92 14% For additi
Slide 13: U.S. Markets first quarter 2024 highlights
U.S. Markets first quarter 2024 highlights Organic Reported Reported • U.S. Financial Services organic FX Impact Constant ($M) Y/Y revenue (ex-mortgage) +1% Currency − Card & Banking flat Revenue $789 7% – 7% − Consumer Lending +2% − Auto +2% − Mortgage +52% (compared to Financial Services 352 13% –
Slide 14: International first quarter 2024 highlights
International first quarter 2024 highlights Organic Reported Reported ($M) Y/Y FX Impact Constant • India (+31%) driven by Currency consumer, commercial, Revenue $236 16% 1% 15% marketing, fraud and direct-to- Canada 38 19% 1% 18% consumer • Canada (+18%) new business Latin America 33 14% 7% 7% wins
Slide 15: Excess cash targeted for debt prepayment
Excess cash targeted for debt prepayment Leverage Ratio1 4.3x 4.1x 3.9x 3.8x 3.5x 3.5x 3.6x 3.5x Low-3x • Roughly $5.3 billion of debt 3.4x 3.1x 3.1x Range <3.0x and $434 million cash at quarter-end • No prepayments in Q1 but plan to make prepayments in 2024 2015 2015 2016 2017 2018 2019 2020 2021 2
Slide 16: Second quarter 2024 guidance
Second quarter 2024 guidance Reported Revenue: $1,017M to $1,026M +5% to +6% Assumed M&A contribution: No impact Revenue Assumed FX contribution: Insignificant Assumes similar lending and Organic Constant Currency Revenue: +5% to +6% marketing trends to Q1 2024 Assumed mortgage impact: ~3pt. benefit
Slide 17: Full-year 2024 revenue guidance
Full-year 2024 revenue guidance Reported Revenue: $4.023B to $4.083B +5% to +6.5% Assumed M&A contribution: No impact Assumed FX contribution: Insignificant Assumptions Organic Constant Currency Revenue: +5% to +6.5% • Guidance raise driven by better price realization in Assumed mortgage impact: ~3p
Slide 18: Full-year 2024 Adjusted EBITDA, Adjusted Diluted EPS and other guidance
Full-year 2024 Adjusted EBITDA, Adjusted Diluted EPS and other guidance Adjusted EBITDA: $1.433B to $1.475B +7% to +10% Assumed FX contribution: Insignificant • Higher net interest expense Adjusted EBITDA margin: 35.6% to 36.1% (prior $245M) due to SOFR Adjusted EBITDA margin bps change: +50bps to +
Slide 19: Exceeded Q1 guidance, achieved milestones, raising 2024 guidance
Exceeded Q1 guidance Achieved key Raising 2024 guidance, for revenue, Adjusted milestones on our now expect 5% to 6.5% EBITDA and Adjusted transformation program organic constant- Diluted EPS currency revenue growth Note: For additional information, refer to the “Non-GAAP Financial Information” sect
Slide 20: Q&A
Q&A @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 20
Slide 21: Appendices and Non-GAAP Reconciliations
Appendices and Non-GAAP Reconciliations @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 21
Slide 22: U.S. Markets Revenue Composition (FY 2023)
U.S. Markets Revenue Composition (FY 2023) Financial Services: ~$1.2B Emerging Verticals: ~$1.2B Consumer Interactive: ~$0.6B Collections 6% Public Sector Auto 5% 20% Tenant & Employment Card & Insurance Screening Direct Banking 7% 25% 33% 35% Media 14% Mortgage Indirect 22% Tech, Retail & E- 67% Te
Slide 23: Our next phase of transformation to reduce costs and accelerate innovation
Our next phase of transformation to reduce costs and accelerate innovation Programs Expected Benefits Optimize operating model ~ $200M free cash flow benefit by 2026 • Expand Global Capability Center (GCC) network and • $120-140M of operating expense savings; half realized in drive further work
Slide 24: Debt Profile and 2024F Interest Expense Bridge
Debt Profile and 2024F Interest Expense Bridge Debt Profile (3/31/24) 2024F Interest Expense Bridge Notional Expiry Rate ($B) Term Loan ~($9M) Tranche Term Loan A-4 1.3 Oct’28 SOFR + CSA + 1.50% ~($8M) Term Loan B-5 2.2 Nov’26 SOFR + CSA + 1.75% $267M ~($1M) Term Loan B-7 1.9 Dec’28 SOFR + 2.00%* Sw
Slide 25: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 25
Slide 26: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 26
Slide 27: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 27
Slide 28: Leverage Ratio
Leverage Ratio @ Copyright 2024 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 28
Slide 29: Non-GAAP Adjustment Footnotes
Non-GAAP Adjustment Footnotes As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. 1. Consisted of amortization of intangible assets from our 2012 change-in-control transaction and amortization of intangible assets established in business acquisi
Slide 30: Non-GAAP Adjustment Footnotes
Non-GAAP Adjustment Footnotes 5. Net other consisted of the following adjustments: 6. Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue. 7. Total adjustments for income taxes represents the total of adjustments discussed to calculate the Adju
Slide 31: Adjusted EBITDA and Adjusted EPS Guidance
Adjusted EBITDA and Adjusted EPS Guidance As a result of displaying amounts in millions, rounding differences may exist in the table. 1. These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of ou