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Equifax
🇺🇸 NYSE:EFX
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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.

Total Revenue
$1.24B
Previous year: $1.22B
+1.7%
EPS
$1.73
Previous year: $1.85
-6.5%
Workforce Solutions Oper. Margin
41.3%
Previous year: 49.8%
-17.1%
International Operating Margin
14.8%
Previous year: 11.4%
+29.8%
Workforce Solutions Adj. EBITDA
49.5%
Previous year: 54.3%
-8.8%
Gross Profit
$702M
Previous year: $734M
-4.4%
Cash and Equivalents
$242M
Previous year: $2.03B
-88.1%
Total Assets
$11.3B
Previous year: $11.1B
+2.0%

Equifax

Equifax

Equifax Revenue by Segment

Equifax Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View Equifax