TransUnion (TRU) Baird 2024 Global Industrials Conference summary

Macro environment and business drivers

• Growth is influenced by GDP, employment, and real wage growth, but recent uncertainty around inflation and interest rates has been a challenge.

• Stability in interest rates has led to more stable business volumes, even without significant rate reductions in 2024.

• Lending volumes, especially in mortgage, are at historic lows, presenting medium-term upside as rates eventually decline.

• Several consumer lending categories, including auto and credit card, remain below pre-pandemic levels, offering future growth potential.

Product innovation and revenue growth

• New products like Trusted Call Solutions, TruAudience, and TruIQ Data Enrichment have driven growth despite subdued lending volumes.

• Fraud solutions under TruValidate are building a strong pipeline, contributing to recent financial services growth.

• Marketing products for lenders have become a significant and growing revenue stream.

Mortgage market dynamics

• Mortgage inquiry volumes declined 8% in Q3, but revenues increased 63%, driven by third-party pricing and competitive positioning in pre-qualification.

• Recent changes allow pre-qualification with a single credit bureau, increasing competitive opportunities and share gains.

• Revenue growth in mortgage is also supported by marketing products sold to lenders.