Equifax (EFX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $1.442 billion, up 9% year-over-year, with organic constant dollar revenue up 10% and non-mortgage local currency revenue growth of 10%.

• Adjusted EPS was $1.85, up 5% year-over-year, while net income attributable to Equifax was $141.3 million, down 13% due to higher taxes and expenses.

• 80% of revenue now on Equifax Cloud, with major cloud migration milestones completed in USIS, Canada, and US Consumer; targeting 90% by year-end.

• Strong innovation with a 13% Vitality Index, and all new models and scores built using AI/ML.

• Revenue growth was driven by USIS, International, and Workforce Solutions, with notable contributions from the BVS acquisition in Latin America.

Financial highlights

• Q3 2024 revenue: $1.442 billion, up 9% year-over-year; adjusted EBITDA margin at 33%; adjusted EPS: $1.85, up 5%.

• Net income attributable to Equifax: $141.3 million, down 13% year-over-year; diluted EPS: $1.13, down 14%.

• Operating margin for Q3 2024: 17.1%, down from 18.7% in Q3 2023.

• Cash provided by operating activities for the nine months ended September 30, 2024, was $999.7 million.

• Capex declined in Q3 2024; capital expenditures for the nine months were $392.6 million.

Outlook and guidance

• Q4 2024 revenue guidance: $1.438–$1.458 billion, up 8.4–9.9% year-over-year; adjusted EPS: $2.08–$2.18.

• Full-year 2024 revenue guidance: $5.700–$5.720 billion, up 8.3–8.6%; adjusted EPS: $7.25–$7.35.

• Guidance assumes a 9% increase in U.S. mortgage credit inquiries in Q4 and a 7% decline for the full year.

• Long-term targets: 8–12% annual revenue growth, 50 bps annual EBITDA margin expansion, and 95%+ cash conversion.

• 2025 expected to benefit from further cloud savings, margin expansion, and free cash flow acceleration.