TransUnion (TRU) Baird 55th Annual Global Industrial Conference summary

Growth performance and market environment

• Achieved 3% growth in 2022 and 2023 despite high inflation, rising interest rates, and banking failures, demonstrating portfolio resiliency.

• 2024 and 2025 are expected to deliver high single-digit to low double-digit growth, reflecting a return to normalcy and stability in core financial services.

• Growth in 2024 driven by stable lending volumes, strong fintech and consumer lending, and diversified product offerings in auto and emerging verticals.

• International growth balanced by design, with developed markets like Canada and the UK leading in 2024, while India was a key driver in prior years.

• No single market is considered overheated; outperformance in Canada and the UK attributed to innovation and market share gains.

Consumer and customer health

• Consumer health is stable, with normal delinquency levels across lending, auto, mortgage, and credit card segments, matching pre-pandemic rates.

• Bifurcation in consumer credit quality: 40% super prime, 14% subprime, with the middle segment compressing.

• Large and mid-sized banks reported strong earnings, with no increase in loan loss reserves, supporting a stable outlook.

Product and revenue diversification

• Non-credit growth driven by identity resolution, marketing, and fraud solutions, with significant gains from the True Audience product and Trusted Call Solutions.

• Trusted Call Solutions expected to reach $150M revenue in 2025, up from $50M three years ago, with international expansion potential.

• Factor Trust database, focused on short-term lending, saw 20% growth in the most recent quarter.