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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%.
Equifax
Equifax
Equifax Revenue by Segment
Revenue by Segment
Workforce Solutions Revenue
CapyFin.comUS Information Solutions Revenue
CapyFin.comInternational Revenue
CapyFin.com 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