Equifax (EFX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $1.442B, up 9% year-over-year, with organic constant dollar revenue up 10% and non-mortgage local currency revenue growth of 10%.

• Net income attributable to Equifax was $141.3M, down 13% from Q3 2023, impacted by higher taxes and expenses.

• Adjusted EPS was $1.85, up 5% year-over-year; diluted EPS was $1.13, down 14%.

• 80% of revenue now in the Equifax Cloud, with US Consumer Cloud migrations completed and 90% expected by year-end.

• Strong new product innovation, with a 13% Vitality Index and all new models built using AI/ML.

Financial highlights

• Q3 2024 revenue: $1.442B, up 9% year-over-year; adjusted EBITDA margin at 32.7%–33%.

• Net income attributable to Equifax: $141.3M, down 13% year-over-year; diluted EPS $1.13.

• Adjusted EBITDA was $471.9M, up 8% year-over-year; adjusted EPS $1.85, up 5%.

• Cash provided by operating activities for the nine months ended September 30, 2024, was $999.7M.

• Dividends per share remained at $0.39; $144.8M paid YTD.

Outlook and guidance

• Q4 2024 revenue guidance: $1.438B–$1.458B, up 8.4%–9.9% year-over-year; adjusted EPS: $2.08–$2.18.

• Full-year 2024 revenue guidance: $5.700B–$5.720B, up 8.3%–8.6%; adjusted EPS: $7.25–$7.35.

• Long-term framework targets 8–12% annual revenue growth, 50 bps annual EBITDA margin expansion, and 95%+ cash conversion.

• 2025 expected to see further margin expansion, lower CapEx, and accelerating free cash flow as cloud investments wind down.

• Guidance assumes a 9% increase in U.S. mortgage credit inquiries in Q4 and a 7% decline for the full year.