On July 25, 2024, TransUnion (TRU, Financial) released its 8-K filing for the second quarter of 2024, showcasing robust financial performance that surpassed analyst expectations. TransUnion, one of the three leading credit bureaus in the United States, provides consumer information for credit granting, fraud detection, marketing, and analytical services, operating in over 30 countries.
Performance Highlights
TransUnion reported total revenue of $1,041 million for Q2 2024, an 8% increase compared to the same period in 2023. This growth was driven by strong performance in U.S. mortgage, International, and Emerging Verticals. The company's net income attributable to TransUnion was $85 million, up from $54 million in Q2 2023, resulting in diluted earnings per share (EPS) of $0.44, compared to $0.28 in the previous year.
Adjusted Net Income for the quarter was $193 million, up from $166 million in Q2 2023, with Adjusted Diluted EPS at $0.99, compared to $0.86 in the same period last year. Adjusted EBITDA also saw an 11% increase, reaching $377 million, with an Adjusted EBITDA margin of 36.2%, up from 35.0% in Q2 2023.
Segment Performance
In the U.S. Markets, revenue grew by 6% to $809 million. Financial Services revenue increased by 11% to $359 million, while Emerging Verticals revenue rose by 4% to $308 million. However, Consumer Interactive revenue saw a slight decline of 1%, totaling $142 million. Adjusted EBITDA for U.S. Markets was $316 million, a 9% increase from Q2 2023.
International revenue surged by 13% to $235 million, with notable growth in regions such as India (25%), Asia Pacific (13%), and Latin America (14%). Adjusted EBITDA for the International segment was $101 million, a 16% increase from the previous year.
Financial Achievements and Liquidity
TransUnion made significant strides in its financial health by voluntarily prepaying $80 million in debt and completing debt refinancing, which extended maturities and reduced interest expenses. The company also reported cash and cash equivalents of $543 million as of June 30, 2024, up from $476 million at the end of 2023.
For the first half of 2024, cash provided by operating activities was $349 million, compared to $293 million in the same period last year. This increase was primarily due to improved operating performance. Cash used in investing activities decreased to $127 million from $186 million in 2023, mainly due to lower capital expenditures and prior year investments in non-consolidated affiliates.
Outlook and Guidance
TransUnion has raised its 2024 financial guidance, now expecting to deliver 7% to 8% revenue growth for the year. The company anticipates Q3 2024 revenue to be between $1,044 million and $1,060 million, with full-year revenue projected to range from $4,098 million to $4,138 million. Adjusted EBITDA for Q3 2024 is expected to be between $367 million and $380 million, with full-year Adjusted EBITDA projected to be between $1,455 million and $1,485 million.
TransUnion's President and CEO, Chris Cartwright, commented,
“In the second quarter, TransUnion again exceeded financial guidance. U.S. Markets grew due to mortgage and broad-based Emerging Verticals strength, with lending conditions largely consistent with the prior quarter. Our International segment delivered double-digit growth across India, Asia Pacific, Latin America and Canada.”
For more detailed financial information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from TransUnion for further details.
