TransUnion Reports Strong Q3: Double-Digit Gains Across US And International Markets, Boosts FY24 Outlook

TransUnion TRU shares traded higher on Wednesday after reporting its third-quarter results.

Revenue reached $1.085 billion, up 12% year-over-year (12% on a constant currency basis), beating the consensus of $1.06 billion.

Revenue from U.S. Markets reached $848 million, up 12% from the previous year, and International revenue rose 11% to $242 million in the quarter.

Adjusted EBITDA rose 11% to $394 million, with an adjusted EBITDA margin of 36.3%, slightly down from 36.8% in the year-ago quarter.

Adjusted EPS of $1.04 exceeded the consensus of $1.01.

For the nine months ended September 30, 2024, operating cash flow came in at $579 million. Cash and cash equivalents totaled $643 million as of September-end.

Chris Cartwright, President and CEO, said, “U.S. Markets grew by double-digits against stable market conditions, driven by mortgage strength, improving non-mortgage financial services, accelerating insurance growth and large breach remediation wins. Our International segment delivered double-digit organic constant currency revenue growth across India, Latin America, Asia Pacific and Africa.”

“We continue to progress well against our transformation program. We now expect to capture $85 million of operating expense savings in 2024, driven by strong execution against our operating model optimization to expand our Global Capability Center network.”

Outlook: TransUnion raised its FY24 revenue outlook to $4.161 billion – $4.181 billion (from $4.098 billion – $4.138 billion) versus the estimate of $4.143 billion.

The company boosted adjusted EPS guidance to $3.87 – $3.93 (prior view: $3.78 – $3.90) versus the consensus of $3.87.

For the fourth quarter, TransUnion anticipates revenue of $1.014 billion – $1.034 billion versus an estimate of $1.017 billion and adjusted EPS of $0.92 – $0.98 compared to a consensus of $0.97.

Investors can gain exposure to the stock via VanEck ETF Trust VanEck Morningstar Wide Moat Growth ETF MGRO and VanEck Morningstar ESG Moat ETF MOTE.

Price Action: TRU shares are up 6.37% at $112.52 at the last check Wednesday.

Photo via Shutterstock

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