Equifax (EFX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1.43B, up 9% year-over-year, with adjusted EPS at $1.82 and net income up 19% to $163.9M; performance exceeded guidance.

• Growth was led by strong non-mortgage businesses (13% constant currency growth), international (28% constant currency), and USIS mortgage revenue (up 27%).

• Cloud transformation advanced, with 80% of revenue in the cloud by July and 89% of new models built using AI/ML.

• Operating margin improved to 19.7% and adjusted EBITDA margin was 32%.

• Net income and diluted EPS rose 19% and 17% respectively, reflecting disciplined expense management.

Financial highlights

• Q2 revenue: $1.43B, up 9% year-over-year; adjusted EPS: $1.82, up 6%; net income: $163.9M, up 19%.

• Adjusted EBITDA margin: 32%; operating margin: 19.7%.

• Non-mortgage constant currency revenue up 13%; USIS mortgage revenue up 27%.

• Cash from operations for six months: $520.2M, up $107.2M year-over-year.

• Active TWN records up 12% to 180M; total records up 10% to 695M.

Outlook and guidance

• 2024 revenue guidance midpoint: $5.72B (+8.6%), adjusted EPS: $7.35 (+9.5%).

• Q3 2024 revenue expected at $1.425B–$1.445B; adjusted EPS $1.75–$1.85.

• Full-year constant currency revenue growth expected at 10.5%, organic at 8.5%.

• Guidance assumes an 11% decline in 2024 U.S. mortgage credit inquiries.

• CapEx for 2024 expected at $485M, down $100M year-over-year.