Equifax Delivers Seventh Consecutive Quarter of Double-Digit Revenue Growth

Equifax Inc. announced financial results for the quarter ended September 30, 2021.

  • Record third quarter revenue of $1.2 billion, up 14%
  • Workforce Solutions revenue growth of 35%; tenth consecutive quarter of double-digit revenue growth
  • Strong new product roll-outs leveraging new EFXCloud
  • Executed strategic acquisitions of Appriss Insights, Health e(fx) and Teletrack which enhance differentiated data, strengthen Workforce Solutions and broaden ID & Fraud capabilities
  • Increasing full-year revenue and EPS guidance

“We continued our strong financial performance with our seventh consecutive quarter of double-digit revenue growth. Our record third quarter revenue of $1.223 billion was up 14% and offset the impact of a decline in the U.S. mortgage market. This growth was again powered by Workforce Solutions, growing 35%, as well as strong growth in USIS non-mortgage and International revenue,” said Mark W. Begor, Equifax Chief Executive Officer. “We are investing our strong outperformance in almost $3 billion of strategic and accretive acquisitions this year which will position Equifax for future growth, including our people-based risk intelligence data provider Appriss Insights, which we closed just after quarter-end. The acquisitions enhance the differentiated data ‘Only Equifax’ can provide, driving substantial revenue growth and synergies in the future. Our EFX2023 strategy, leveraging the EFX Cloud to drive innovation, new products and growth, has positioned us to continue our strong performance into 2022 and beyond. Based on our very strong third quarter results, we are again raising our full-year financial guidance, reflecting revenue to a range of $4.901 billion to $4.921 billion, and Adjusted EPS to a range of $7.52 to $7.62.”

Financial Results Summary

The company reported revenue of $1,222.9 million in the third quarter of 2021, up 14 percent compared to the third quarter of 2020 on a reported basis and 14 percent on a local currency basis.

Net income attributable to Equifax of $205.4 million was down 10 percent in the third quarter of 2021 compared to net income attributable to Equifax of $228.5 million in the third quarter of 2020.

Diluted EPS attributable to Equifax was $1.66 for the third quarter of 2021, down 11 percent compared to $1.86 in the third quarter of 2020.

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Workforce Solutions third quarter results

  • Total revenue was $508.0 million in the third quarter of 2021, a 35 percent increase compared to the third quarter of 2020. Operating margin for Workforce Solutions was 49.8 percent in the third quarter of 2021 compared to 51.3 percent in the third quarter of 2020. Adjusted EBITDA margin for Workforce Solutions was 54.3 percent in the third quarter of 2021 compared to 57.8 percent in the third quarter of 2020.
  • Verification Services revenue was $402.7 million, up 34 percent compared to the third quarter of 2020.
  • Employer Services revenue was $105.3 million, up 39 percent compared to the third quarter of 2020.

USIS third quarter results

  • Total revenue was $387.8 million in the third quarter of 2021, flat compared to $386.3 million in the third quarter of 2020. Operating margin for USIS was 30.1 percent in the third quarter of 2021 compared to 33.3 percent in the third quarter of 2020. Adjusted EBITDA margin for USIS was 40.1 percent in the third quarter of 2021 compared to 46.0 percent in the third quarter of 2020.
  • Online Information Solutions revenue was $286.3 million, up 1 percent compared to the third quarter of 2020.
  • Mortgage Solutions revenue was $46.2 million, down 17 percent compared to the third quarter of 2020.
  • Financial Marketing Services revenue was $55.3 million, up 20 percent compared to the third quarter of 2020.

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International third quarter results

  • Total revenue was $245.4 million in the third quarter of 2021, up 13 percent and up 10 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively. Operating margin for International was 11.4 percent in the third quarter of 2021, compared to 11.6 percent in the third quarter of 2020. Adjusted EBITDA margin for International was 26.7 percent in the third quarter of 2021, compared to 32.4 percent in the third quarter of 2020.
  • Asia Pacific revenue was $88.7 million, up 11 percent and up 7 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively.
  • Europe revenue was $67.7 million, up 15 percent and up 9 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively.
  • Latin America revenue was $44.6 million, up 11 percent and up 16 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively.
  • Canada revenue was $44.4 million, up 15 percent and up 8 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively.

Global Consumer Solutions third quarter results

  • Total revenue was $81.7 million in the third quarter of 2021, down 6 percent and down 7 percent compared to the third quarter of 2020 on a reported and local currency basis, respectively. Operating margin was 14.4 percent in the third quarter of 2021 compared to 14.4 percent in the third quarter of 2020. Adjusted EBITDA margin was 23.4 percent in the third quarter of 2021, compared to 24.8 percent in the third quarter of 2020.

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