Q4 2024 TransUnion Earnings Call Transcript
Key Points
- TransUnion (TRU) exceeded guidance on revenue and adjusted EBITDA for the fifth consecutive quarter, with a 9% revenue growth on an organic constant currency basis.
- The company achieved significant debt reduction, prepaying $45 million in debt during the quarter and $150 million in 2024, while also refinancing over $2.3 billion of term loans.
- TransUnion (TRU) launched several innovative products in 2024, including TruIQ Data Enrichment and TruValidate Fraud Mitigation, which are driving strong pipeline and new business wins.
- The company achieved its near-term leverage ratio target of 3 times by year-end, indicating strong financial management.
- TransUnion (TRU) announced a strategic collaboration with Credit Sesame to launch a new freemium credit management platform, enhancing its consumer offerings and market reach.
- Consumer Interactive revenue declined by 11% due to lapping a large breach win from the prior year, indicating challenges in maintaining consistent growth in this segment.
- The company anticipates a 1% to 4% adjusted diluted earnings per share growth in 2025, with a 600-basis-point headwind from foreign exchange and a higher tax rate due to global tax law changes.
- TransUnion (TRU) expects muted but stable lending activity in the US, reflecting volumes well below historical trends, which could limit growth potential.
- The company faces a 1% revenue headwind in 2025 from lapping against last year's large breach win, impacting overall growth projections.
- India's growth is expected to moderate in the first half of 2025 due to regulatory actions by the Reserve Bank of India, potentially affecting international revenue growth.
Good morning, and welcome to the TransUnion 2024 fourth quarter earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Greg Bardi, Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer; and Todd Cello, Executive Vice President and Chief Financial Officer. We posted our earnings release and slides to accompany this call on the TransUnion Investor Relations website this morning, and they can also be found in the current report on Form 8-K that we filed this morning.
Our earnings release and the accompanying slides include various schedules, which contain more detailed information about revenue, operating expenses and other items as well as certain non-GAAP disclosures and financial measures along with the corresponding reconciliation of these non-GAAP financial
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