Slide 1: Second Quarter 2023 Earnings
Second Quarter 2023 Earnings Chris Cartwright, President and CEO Todd Cello, CFO July 25, 2023
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 This investor presentation includes certain non- Reform Act of 1995. These statements are based on the current beliefs and expectati
Slide 3: Economic perspectives and financial highlights; GCCs; results; guidance
Economic perspectives and 1 financial highlights Spotlight on Global Capability 2 Centers (GCCs) Second quarter 2023 financial 3 results Third quarter and full-year 2023 4 guidance @ Copyright 2023 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 3
Slide 4: Economic conditions stable across TransUnion's markets
Economic conditions stable across TransUnion’s markets U.S. consumer U.S. lenders more Canada and UK Emerging markets credit demand cautious but still conditions similar growth continues healthy as actively originating, to U.S. as with loan volume employment and albeit at below-peak consumers conten
Slide 5: Second quarter 2023 highlights
Second quarter 2023 highlights Revenue, Adjusted 3% organic 9th straight Strategic Prepayment of EBITDA and revenue growth,* quarter of partnership and $75M in debt or Adjusted Diluted or 2% excluding double-digit minority $150M year-to- EPS all exceeded U.S. mortgage International investment in dat
Slide 6: Neustar revenue growth accelerates
Neustar revenue growth accelerates • All three product lines contributed to Q2 revenue growth Financial results – Acceleration throughout 2023 supported by strong bookings, renewals and usage • Q2 2023: ~6% revenue growth • Maintaining 2023 • Marketing signed or expanded partnerships with Guidance:
Slide 7: Global Capability Centers (GCCs) enable scale, speed, efficiency and 24/7 availability
Global Capability Centers (GCCs) enable scale, speed, efficiency and 24/7 availability GCCs accelerate our business transformation GCCs global footprint and innovation efforts • Centralize operational 4000+ activities for the enterprise • Access wide and diverse 2000 pool of high-quality talent 1000
Slide 8: Consolidated second quarter 2023 highlights
Consolidated second quarter 2023 highlights Reported Y/Y ($M) Change Revenue $968 2% • Organic constant Organic Constant Currency Revenue 3% currency revenue growth of +3%, or Adjusted EBITDA $339 (3)% +2% excluding Adjusted EBITDA Margin 35.0% (190bps) mortgage Adjusted Diluted EPS $0.86 (13)% For
Slide 9: U.S. Markets second quarter 2023 highlights
U.S. Markets second quarter 2023 highlights • U.S. Markets organic revenue growth (ex-mortgage) flat Organic • U.S. Financial Services organic Reported Reported FX Inorganic revenue (ex-mortgage) -3% Constant ($M) Y/Y Impact Impact Currency − Auto +1% − Card -5% and Consumer Revenue $642 1% – – 1% L
Slide 10: Consumer Interactive second quarter 2023 highlights
Consumer Interactive second quarter 2023 highlights Organic Reported Reported FX Inorganic • Indirect channel and Sontiq Constant ($M) Y/Y Impact Impact growth offset by continued, but Currency moderating, declines in direct channel Revenue $144 (2)% – – (2)% • Adjusted EBITDA margin of 47.0%, up 80
Slide 11: International second quarter 2023 highlights
International second quarter 2023 highlights Organic Reported Reported Inorganic FX Impact Constant ($M) Y/Y Impact Currency • India revenue growth (+35%* Revenue $202 8% 5% – 13% constant-currency) driven by consumer, commercial, Canada 35 6% 6% – 11% marketing, fraud and direct-to- Latin America 3
Slide 12: Intend to deleverage and use excess cash for debt prepayment
Intend to deleverage and use excess cash for debt prepayment • Roughly $5.5 billion of debt Leverage Ratio1 and $442 million cash at quarter-end 4.3x 4.1x 3.9x 3.8x 3.8x • $75M of debt prepayment in 3.4x 3.5x 3.5x <3.5x 3.1x 3.1x <3.0x June and $150M YTD; Leverage Ratio of ~3.8x at the end of Q2 202
Slide 13: Third quarter 2023 guidance
Third quarter 2023 guidance Reported Revenue: $973M to $988M +4% to +5% Assumed M&A contribution: No impact Revenue Assumed FX contribution: Insignificant Strong results in International and Organic Constant Currency Revenue: +4% to +5% improving growth in U.S. Markets Assumed mortgage impact: ~1.5p
Slide 14: Full-year 2023 revenue guidance
Full-year 2023 revenue guidance Reported Revenue: $3.825B to $3.885B +3% to +5% Assumed M&A contribution: <1pt. benefit Assumed FX contribution: ~(1)pt. headwind Market Assumptions Organic Constant Currency Revenue: +3% to +5% • Maintaining FY guidance to account for uncertain market Assumed mortgag
Slide 15: 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 Adjusted EBITDA margin: 36.3% to 36.6% • Intend to use excess cash for Adjusted EBITDA margin bps change: Flat to +30bps debt prepayment; h
Slide 16: Exceeded Q2 guidance for revenue, Adjusted EBITDA and Adjusted EPS
Exceeded Q2 guidance Expect accelerating Maintaining FY 2023 for revenue, Adjusted revenue and earnings guidance to account for EBITDA and Adjusted growth in second half of market uncertainty Diluted EPS, led by the year strong growth in International Note: For additional information, refer to the “
Slide 17: Q&A
Q&A @ Copyright 2023 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 17
Slide 18: Appendices: Non-GAAP Reconciliations
Appendices: Non-GAAP Reconciliations @ Copyright 2023 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 18
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA Margin Three Months Six Months As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. $ in millions Ended June 30, Ended June 30, 1. Consisted of stock-based compensation, including amounts which are cash settled
Slide 20: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS Three Months Six Months As a result of displaying amounts in millions, rounding differences may exist in the table and footnotes. $ in millions, except per share data Ended June 30, Ended June 30, 1. Consisted of stock-based compensation, including amounts which
Slide 21: Adjusted Diluted EPS
Adjusted Diluted EPS Three Months Three Months As a result of displaying amounts in millions, rounding differences may exist in the table and footnotes. Ended June 30, Ended June 30, 1. Consisted of stock-based compensation, including amounts which are cash settled. 2. Mergers and acquisitions, dive
Slide 22: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Three Months Three Months $ in millions As a result of displaying amounts in millions, rounding differences may exist Ended June 30, Ended June 30, in the table. 2023 2022 2023 2022 1. Tax rates used to calculate the tax expense impact are based on the nature of each item
Slide 23: Leverage Ratio
Leverage Ratio Trailing Twelve As a result of displaying amounts in millions, rounding differences may $ in millions Months Ended exist in the table. June 30, 1. Consisted of stock-based compensation, including amounts which 2023 are cash settled. Reconciliation of net income attributable to TransUn
Slide 24: Adjusted EBITDA and Adjusted EPS Guidance
Adjusted EBITDA and Adjusted EPS Guidance Three Months Ended Twelve Months Ended As a result of displaying amounts in millions, rounding $ in millions, except per share data September 30, 2023 December 31, 2023 differences may exist in the table. Low High Low High 1. These adjustments include the sa