TransUnion (TRU) Q2 2024 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $1,041 million in Q2 2024, exceeding guidance, driven by strong performance in U.S. mortgage, International, and Emerging Verticals, and supported by transformation milestones and the OneTru platform rollout.

• Net income attributable to TransUnion rose to $85 million, up 57.6% year-over-year, with Adjusted Diluted EPS increasing to $0.99, up 15%.

• Adjusted EBITDA increased 11% to $377 million, with margin improving to 36.2% from 35.0%.

• Transformation initiatives are underway, targeting $120–$140 million in annual savings and reduced capital expenditures post-2025.

• Voluntarily prepaid $80 million in debt, refinanced debt to extend maturities, and reduced interest expense.

Financial highlights

• Q2 2024 revenue reached $1,041 million, up 8% year-over-year; organic constant currency revenue also up 8%, or 4% excluding mortgage.

• Adjusted EBITDA was $377 million, up 11% year-over-year, with a margin of 36.2% (up 115bps).

• Adjusted Diluted EPS was $0.99, up 15% year-over-year.

• Net income margin improved to 8.2% from 5.6% year-over-year.

• $33 million in one-time transformation charges in Q2; $76 million in first half, with $200 million expected for 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.098–$4.138 billion, up 7–8% organically; Adjusted EBITDA of $1.455–$1.485 billion, up 8–11%; Adjusted Diluted EPS of $3.78–$3.90, up 12–16%.

• Q3 2024 revenue expected at $1.044–$1.06 billion, up 8–10% organically; Adjusted EBITDA of $367–$380 million.

• Guidance includes ~$40 million revenue and $5 million Adjusted EBITDA from large breach wins in H2 2024.

• Guidance assumes stable macroeconomic conditions, with mortgage expected to contribute 3 points of benefit for FY 2024.

• Conservative guidance maintained, assuming muted economic growth and no benefit from rate cuts.