NYSE$TRU

TransUnion · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

TransUnion's Q1 2023 financial performance exceeded expectations, driven by international growth and Neustar integration progress.

TransUnion's Q1 2023 results showed revenue growth of 2% to $940 million, driven by strong international performance. Net income increased to $53 million, while adjusted EBITDA was $322 million. The company prepaid $75 million in debt and is maintaining its full-year guidance.

  • Exceeded first quarter 2023 financial guidance.
  • Grew revenues by 2 percent driven by strength in International.
  • Drove meaningful progress in Neustar integration, including strong cross-sell wins and data integration milestones.
  • Prepaid $75 million in debt in the quarter and intend to make further prepayments in the second quarter and throughout the year.

Headline financials

Total Revenue

$940M

Previous: $921M+2.1%
EPS (adj)

$0.80

Previous: $0.93-14.0%
Adjusted EBITDA

$322M

Previous: $334M-3.6%
Adjusted EBITDA Margin

34.3%

Previous: 36.3%-5.5%
Capital Expenditures

-$66.5M

Previous: -$58.6M-13.5%
Free Cash Flow

-$13.9M

Previous: -$10.3M-35.0%
Net Income

$52.6M

Previous: $48.3M+8.9%
Operating Income

$145M

Previous: $135M+7.6%
Gross Profit

$615M

Previous: $623M-1.3%
Cash & Equivalents

$439M

Previous: $1.3B-66.1%
Total Assets

$11.6B

Previous: $12.2B-5.2%
Stock-Based Comp

$22.1M

Previous: $20.9M+5.7%

Revenue & EPS history

TransUnion · Revenue · Quarterly

$940M

Q1 2023+2.1%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

TransUnion · $763M total across 3 segments · Q1 2023

  • U.S. Financial Services
    $321M+16.1%
  • U.S. Emerging Verticals
    $300M-7.3%
  • Consumer Interactive
    $142M-5.1%

Forward guidance

TransUnion is maintaining its 2023 full-year guidance, with revenue expected to be between $3.825 billion and $3.885 billion and adjusted EBITDA between $1.388 billion and $1.421 billion.

Tailwinds

  • Revenue, as reported: $948 to $958 million
  • Revenue growth: As reported 1% to 3%, Constant currency 1% to 2%, Organic constant currency 1% to 2%
  • Net income attributable to TransUnion: $57 to $61 million
  • Net income attributable to TransUnion margin: 6.0% to 6.4%
  • Adjusted EBITDA, as reported: $330 to $335 million

Headwinds

  • Net income attributable to TransUnion growth: (40)% to (36)%
  • Diluted Earnings per Share growth: (40)% to (36)%
  • Adjusted EBITDA growth, as reported: (6)% to (4)%
  • Adjusted Diluted Earnings per Share growth: (18)% to (15)%
  • The impact of changing foreign currency exchange rates is expected to have approximately 1 point of headwind for Q2 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.7%

Avg return

30 days after

57%

25 / 44 earnings

Positive

+18.4%

Q4 2015

Best reaction

-28.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-1.1%+0.5%
Q4 2025-1.4%+4.9%-2.5%
Q3 2025+3.3%+2.8%+4.0%
Q2 2025-2.9%-4.9%-1.1%
Q1 2025+6.7%+6.7%+7.6%
Q4 2024+7.3%+3.9%-11.9%
Q3 2024+0.8%-2.0%-6.3%
Q2 2024+11.4%+15.8%+25.3%
Q1 2024+8.5%+6.3%+11.1%
Q4 2023+9.8%+6.3%+10.2%
Q3 2023-28.7%-32.8%-8.7%
Q2 2023+3.2%+0.4%-1.1%
Q1 2023+0.3%+7.8%+11.1%
Q4 2022+3.4%+3.9%-12.9%
Q3 2022+1.9%+5.1%+8.4%
Q2 2022-14.0%-9.6%-7.5%
Q1 2022-3.6%-5.7%-8.1%
Q4 2021-11.9%-6.6%+4.5%
Q3 2021-7.3%-2.4%-3.4%
Q2 2021+1.6%+3.0%+1.4%
Q1 2021+3.4%+4.0%+6.4%
Q4 2020-6.9%-6.1%-8.1%
Q3 2020-6.1%-5.6%+11.0%
Q2 2020+3.2%+0.2%-3.5%
Q1 2020+8.1%+2.6%+13.9%
Q4 2019+2.2%-0.7%-40.2%
Q3 2019+1.3%-0.1%+2.8%
Q2 2019+9.0%+12.7%+12.2%
Q1 2019-3.4%-1.8%-6.9%
Q4 2018-2.1%-2.6%+1.0%
Q3 2018-6.9%-10.2%-11.5%
Q2 2018-1.2%-4.5%-2.1%
Q1 2018+8.3%+8.0%+13.6%
Q4 2017-4.0%+0.6%+0.9%
Q3 2017+2.5%+4.5%+7.7%
Q2 2017-0.1%-0.7%+3.7%
Q1 2017-0.2%+0.4%+7.3%
Q4 2016+9.4%+8.5%+10.6%
Q3 2016-3.5%-6.6%-5.1%
Q2 2016-4.9%-7.3%-6.4%
Q1 2016+9.6%
Q4 2015+18.4%
Q3 2015+1.7%
Q2 2015+0.6%
Q4 2014
Q1 2015
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q4 2012
Q1 2013

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