Equifax (EFX) Stifel 2024 Cross Sector Insight Conference summary

Business transformation and growth drivers

• Diversified beyond traditional credit bureau services, with Workforce Solutions now nearly 50% of revenue and the fastest-growing segment.

• Government vertical in Workforce Solutions has become the largest, delivering income data for social services to over 100 million individuals, now a $700 million run-rate business.

• Significant expansion into background screening and HR solutions, each generating over $400 million in revenue.

• International business now exceeds 20% of total revenue, bolstered by acquisitions like Boa Vista in Brazil.

• Long-term growth rate target increased to 8%-12% with 50 basis points of annual operating leverage, driven by cloud transformation and new product initiatives.

Innovation and product development

• Vitality Index, measuring revenue from new products launched in the last three years, has risen from 5%-7% to over 13% in the past two years.

• High incremental margins from new products drive both top and bottom line growth.

• Cloud transformation enables faster product development and integration across business units.

Market and macroeconomic trends

• Low unemployment and healthy consumer credit scores support financial services activity through 2024.

• Mortgage market remains down 50% from normal levels, but recovery is expected to provide a $1.1 billion revenue and $700 million EBITDA tailwind.

• Auto lending remains resilient despite higher payments, while subprime delinquencies rose due to inflation but are not a major concern.