Slide 1: Third Quarter 2023 Earnings
Third Quarter 2023 Earnings Chris Cartwright, President and CEO Todd Cello, CFO October 24, 2023
Slide 2: Forward-Looking Statements and 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
Economic perspectives and 1 financial highlights Executing against an uncertain 2 macro backdrop Third quarter 2023 financial 3 results Fourth quarter and full-year 2023 4 guidance @ Copyright 2023 TransUnion, its subsidiaries and/or affiliates. All Rights Reserved. 3
Slide 4: Economic conditions softened in U.S. and U.K., largely stable internationally
Economic conditions softened in U.S. and U.K., largely stable in TransUnion’s other international markets Headline Consumer Lenders tightening International indicators remain confidence credit standards growth continues healthy due to high moderating due to against weakening led by India, Canada emp
Slide 5: Third quarter 2023 highlights
Third quarter 2023 highlights 3% organic 2% growth in U.S. 10th straight Prepayment of Settlements of revenue growth*, Markets*, led by quarter of $75M in debt or CFPB and FTC or 2% excluding double-digit growth double-digit $225M year-to- cases regarding U.S. mortgage in Mortgage, Tech, Internation
Slide 6: Neustar driving growth at scale within our U.S. Markets
Neustar driving growth at scale within our U.S. Markets • Subscription indicators remain strong – pipeline, Financial results bookings, renewals • Q3 2023: ~7% – Q3 growth led by Communications and Marketing revenue growth – Lower usage-based revenue within Marketing (audience • Expecting mid-single
Slide 7: Creating shareholder value in challenging market conditions
Creating shareholder value in challenging market conditions Strategy Examples Emphasize relevant solutions for uncertain backdrop: • Trended, alternative and short-term lending data Deliver innovative solutions to support customers • Trusted Call Solutions • Fraud and ID verification • Marketing I
Slide 8: Consolidated third quarter 2023 highlights
Consolidated third quarter 2023 highlights Reported Y/Y ($M) Change Revenue $969 3% • Organic constant currency revenue Organic Constant Currency Revenue 3% growth of +3%, or Adjusted EBITDA $356 5% +2% excluding mortgage Adjusted EBITDA Margin 36.8% 50bps Adjusted Diluted EPS $0.91 (2)% For additio
Slide 9: U.S. Markets third quarter 2023 highlights
U.S. Markets third quarter 2023 highlights • U.S. Markets organic revenue growth (ex-mortgage) flat Organic • U.S. Financial Services organic Reported Reported FX Inorganic Constant ($M) Y/Y Impact Impact revenue (ex-mortgage) -6% Currency − Auto +6% Revenue $634 2% – – 2% − Card -5% and Consumer Le
Slide 10: Consumer Interactive third quarter 2023 highlights
Consumer Interactive third quarter 2023 highlights Organic • Strong growth in Sontiq Reported Reported FX Inorganic Constant breach and identity protection ($M) Y/Y Impact Impact Currency products • Direct channel declines Revenue $143 (3)% – – (3)% moderating as expected • Adjusted EBITDA margin of
Slide 11: International third quarter 2023 highlights
International third quarter 2023 highlights Organic Reported Reported Inorganic ($M) Y/Y FX Impact Impact Constant • India (+31%) driven by Currency consumer, commercial, Revenue $211 12% 0% – 11% marketing, fraud and direct-to- Canada 37 13% 3% – 17% consumer • Canada (+17%) new business Latin Amer
Slide 12: Excess cash targeted for debt prepayment
Excess cash targeted for debt prepayment Leverage Ratio1 4.3x 4.1x • Roughly $5.4 billion of debt 3.9x 3.8x 3.4x 3.5x 3.5x 3.7x ~3.7x and $421 million cash at 3.1x 3.1x <3.0x quarter-end • $75M of debt prepayment in June and $225M YTD • Anticipate additional debt prepayments in Q4 2023 2015 2015 201
Slide 13: Fourth quarter 2023 guidance
Fourth quarter 2023 guidance Reported Revenue: $917M to $932M +2% to +3% Assumed M&A contribution: No impact Revenue Assumed FX contribution: Insignificant Assumes continuation of weaker Organic Constant Currency Revenue: +2% to +3% lending and marketing trends from September Assumed mortgage impact
Slide 14: Full-year 2023 revenue guidance
Full-year 2023 revenue guidance Reported Revenue: $3.794B to $3.809B +2% to +3% Assumed M&A contribution: <1pt. benefit Assumed FX contribution: ~(1)pt. headwind Market Assumptions Organic Constant Currency Revenue: +2% to +3% • Revising guidance for slowing volumes in U.S. and the U.K. Assumed mort
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: $1.320B to $1.333B (2%) to (1%) Assumed FX contribution: ~(1)pt. headwind • Anticipate using excess cash for Adjusted EBITDA margin: 34.8% to 35.0% debt prepayment; however, Adjusted EBITDA margin bps change: (1
Slide 16: Strong execution despite weaker lending and marketing activity
Strong execution despite Investing in long-term High confidence in weaker lending and revenue growth and growth strategy, marketing activity over operational efficiencies transformation initiatives the course of Q3 and business model @ Copyright 2023 TransUnion, its subsidiaries and/or affiliates. A
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 As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. Three Months Ended Nine Months Ended September 30, September 30, 1. For the three and nine months ended September 30, 2023, we recorded a goodwill imp
Slide 20: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. Three Months Ended Nine Months Ended 1. For the three and nine months ended September 30, 2023, we recorded a goodwill impairment of $495 million related to
Slide 21: Adjusted Diluted EPS
Adjusted Diluted EPS As a result of displaying amounts in millions, rounding differences may exist in the tables and footnotes. 1. For the three and nine months ended September 30, 2023, each component of earnings per share is calculated independently, therefore, rounding differences exist in the ta
Slide 22: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Three Months Ended Nine Months Ended As a result of displaying amounts in millions, rounding differences may exist September 30, September 30, in the table. $ in millions 2023 2022 2023 2022 1. Tax rates used to calculate the tax expense impact are based on the Income (lo
Slide 23: Leverage Ratio
Leverage Ratio Trailing Twelve As a result of displaying amounts in millions, rounding differences may exist in the Months Ended September 30, 2023 table. $ in millions Reconciliation of net income (loss) attributable to TransUnion 1. For the three and nine months ended September 30, 2023, we record
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 December 31, December 31, differences may exist in the table. $ in millions, except per share data Low High Low High 1. These adjustments include the same adjustme