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Jun 30, 2023
Equifax Q2 2023 Earnings Report
Equifax had a solid second quarter, executing against its 2023 Cloud spending reduction plan and achieving revenue growth in a challenging mortgage market.
Key Takeaways
Equifax reported flat revenue growth (1% in constant currency) in Q2 2023, despite a challenging mortgage market. The company is revising its full-year guidance downward due to weaker than expected U.S. mortgage originations and slowing U.S. hiring activity.
Revenue of $1.318 billion was flat and up 1% in constant currency.
New Product Vitality Index reached a record of 14%.
USIS revenue increased by 6%, driven by B2B non-mortgage revenue growth.
Shareholder approval received for the merger of Boa Vista Serviços in Brazil.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Equifax is reducing its full year revenue guidance to $5.300 billion at the midpoint and Adjusted EPS Guidance to $6.98 at the midpoint, reflecting the impact of the weaker mortgage market.
Positive Outlook
- Cloud spending reductions of $210 million in 2023 and $275 million in 2024.
- Strong new product innovation leveraging Equifax Cloud.
- Continued strong revenue growth in Government.
- Strong Online B2B non-mortgage revenue growth in USIS.
- Closing of the strategic acquisition of Boa Vista Serviços in early August.
Challenges Ahead
- Weaker than expected U.S. mortgage originations.
- Slowing U.S. hiring activity.
- Expected continuation of weaker U.S. mortgage market.
- Expected continuation of slowing U.S. hiring throughout 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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