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Sep 30, 2022
Equifax Q3 2022 Earnings Report
Equifax reported strong third quarter revenue, driven by non-mortgage growth and international performance.
Key Takeaways
Equifax announced financial results for Q3 2022, with revenue up 2% to $1.244 billion. The company's non-mortgage business showed strong constant dollar revenue growth of 20%, offsetting a decline in the mortgage market. Workforce Solutions and International segments performed well, while USIS revenue declined due to the mortgage market downturn. Full year revenue guidance was maintained at $5.1 billion, but Adjusted EPS guidance was revised downward to $7.54 per share.
Third quarter revenue reached $1.244 billion, a 2% increase despite mortgage market challenges and foreign exchange impacts.
Non-mortgage constant dollar revenue grew by 20%, compensating for the mortgage market decline.
Workforce Solutions revenue increased by 9%, with non-mortgage revenue growth of 40%.
International revenue achieved record levels, with a 17% increase in local currency revenue.
Equifax
Equifax
Equifax Revenue by Segment
Equifax Revenue by Geographic Location
Revenue by Segment
Workforce Solutions Revenue
CapyFin.comUS Information Solutions Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
Latin America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
The company is revising its fourth quarter guidance to reflect the expected impact of a further decline in U.S. mortgage originations and the negative impact of foreign exchange. Full year guidance for revenue is unchanged at $5.1 billion at the midpoint, while Adjusted EPS guidance is revised downward to $7.54 per share at the midpoint.
Positive Outlook
- Strong double-digit non-mortgage revenue growth.
- Progress on EFX Cloud transformation.
- Leveraging new Cloud capabilities to accelerate new product roll-outs.
- Investing in new product and data and analytics capabilities to drive future growth.
- Addition of recent LawLogix and Midigator acquisitions.
Challenges Ahead
- Further weakening in the U.S. mortgage market.
- Expected decline in fourth quarter mortgage originations of over 60%.
- Expected decline in fourth quarter mortgage credit inquiries of over 50%.
- Negative margin impact of the loss of high margin mortgage revenue.
- Increased interest expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income