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Equifax
🇺🇸 NYSE:EFX
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Dec 31, 2023

Equifax Q4 2023 Earnings Report

Equifax's Q4 2023 financial results were announced, showcasing revenue growth despite challenges in the mortgage market.

Key Takeaways

Equifax reported a strong Q4 2023 with an 11% increase in revenue to $1.327 billion. Adjusted EPS increased by 19% to $1.81. The company's non-mortgage business saw a 14% local currency revenue growth, driven by new product performance and strong growth in Workforce Solutions and International segments.

Equifax's Q4 2023 revenue grew by 11% to $1.327 billion, driven by a 14% non-mortgage local currency revenue growth.

Workforce Solutions revenue increased by 10%, with a 17% non-mortgage revenue growth, and Verification Services non-mortgage revenue growth of 27%.

USIS revenue grew by 5%, with mortgage revenue up by 16% and non-mortgage revenue up by 3%.

International revenue increased by 20% on a reported basis and 22% on a local currency basis, with organic local currency revenue growth of 6%.

Total Revenue
$1.33B
Previous year: $1.2B
+10.7%
EPS
$1.81
Previous year: $1.52
+19.1%
Adj. EBITDA Margin
33.7%
Previous year: 31%
+8.7%
Workforce Op. Margin
41.9%
Previous year: 36.5%
+14.8%
Intl. Operating Margin
17.9%
Previous year: 12.4%
+44.4%
Gross Profit
$589M
Previous year: $659M
-10.7%
Cash and Equivalents
$217M
Previous year: $285M
-24.0%
Free Cash Flow
$176M
Total Assets
$12.3B
Previous year: $11.5B
+6.4%

Equifax

Equifax

Equifax Revenue by Segment

Forward Guidance

Equifax issued its full-year 2024 guidance midpoint expectation for revenue of $5.720 billion, up 8.6%, with strong non-mortgage local currency revenue growth of over 10.5% and Adjusted EPS of $7.35. This reflects an expected 16%+ decline in our outlook for 2024 U.S. mortgage credit inquiries

Positive Outlook

  • Revenue is expected to grow by 8.6%.
  • Non-mortgage local currency revenue growth is expected to be over 10.5%.
  • Adjusted EPS is projected to be $7.35.
  • EBITDA margins are expected to expand to 33.3%.
  • The company anticipates outperforming the U.S. mortgage market by approximately 24% across USIS and Workforce Solutions.

Challenges Ahead

  • An over 16% decline in U.S. mortgage credit inquiries is expected.
  • First half mortgage credit inquiries are anticipated to be weaker than the second half.
  • Guidance reflects an expectation of an over 16% decline in U.S. mortgage credit inquiries.
  • Normalization of incentive plans will lead to higher costs.
  • Mortgage Solutions revenue was $22.9 million, down 12 percent when compared to the fourth quarter of 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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