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Sep 30, 2020

TransUnion Q3 2020 Earnings Report

TransUnion's Q3 2020 results were in line with its Upside Case, benefiting from re-openings, government stimulus, and proactive efforts.

Key Takeaways

TransUnion reported a 1% increase in revenue to $696 million and net income of $103 million for the quarter ended September 30, 2020. The company achieved its Upside Case Outlook Scenario, with modest revenue growth and an attractive Adjusted EBITDA margin.

TransUnion achieved third quarter 2020 results in line with its Upside Case as provided in its scenario-based outlook.

Business performance continues to benefit from re-openings, government stimulus and our successful proactive efforts to support our associates, customers and consumers during the pandemic.

The company is reinstating its guidance, and based on the fourth quarter 2020 guidance, expects to deliver modest revenue growth for the full year 2020.

Strategic moves were made to build out the Media vertical through the acquisitions of Signal in the third quarter and Tru Optik early in the fourth quarter.

Total Revenue
$696M
Previous year: $689M
+1.0%
EPS
$0.81
Previous year: $0.76
+6.6%
Adjusted EBITDA
$270M
Previous year: $281M
-3.9%
Adjusted EBITDA margin
38.8%
Previous year: 40.7%
-4.7%
Gross Profit
$474M
Previous year: $469M
+1.1%
Cash and Equivalents
$554M
Previous year: $236M
+134.8%
Free Cash Flow
$135M
Previous year: $235M
-42.8%
Total Assets
$7.2B
Previous year: $7.02B
+2.5%

TransUnion

TransUnion

TransUnion Revenue by Segment

TransUnion Revenue by Geographic Location

Forward Guidance

For the fourth quarter of 2020, revenue is expected to be between $678 million and $698 million, a decrease of 1 percent to an increase of 2 percent compared with 2019. Adjusted EBITDA is expected to be between $255 million and $271 million, a decrease of 2 to 7 percent. Adjusted Diluted Earnings per Share is expected to be between $0.74 and $0.80, a decrease of 1 percent to an increase of 7 percent.

Revenue & Expenses

Visualization of income flow from segment revenue to net income