TransUnion (TRU) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $954M, up 6% reported and 5% organic constant currency; Adjusted EBITDA and Adjusted Diluted EPS exceeded guidance, with growth across all segments.

• 2024 priorities include accelerating revenue and earnings growth, expanding Neustar capabilities, and executing transformation initiatives.

Financial highlights

• FY 2023 revenue was $3.831B, up 3% reported and 3% organic constant currency; Adjusted EBITDA was $1.344B, essentially flat.

• Q4 Adjusted EBITDA was $326M, up 1%, with a 34.2% margin, down 140 bps; Adjusted Diluted EPS was $0.80, up 2%.

• Q4 attributable net income was $46.4M vs. $6.1M a year earlier; FY attributable net loss was $206.2M vs. $266.3M net income in FY 2022.

• FY Adjusted Diluted EPS was $3.37 vs. $3.62; Adjusted Net Income was $655M vs. $699M.

Outlook and guidance

• FY 2024 revenue guidance is $3.960B–$4.020B, with 3%–5% organic constant-currency growth and 1.5%–3.5% growth excluding mortgage.

• FY 2024 Adjusted EBITDA guidance is $1.398B–$1.441B, up 4%–7%, with a 35.3%–35.8% margin; Adjusted Diluted EPS guidance is $3.57–$3.74, up 6%–11%.

• Q1 2024 guidance: revenue $971M–$980M, Adjusted EBITDA $324M–$331M, margin 33.4%–33.8%, and Adjusted Diluted EPS $0.79–$0.81.

• FY guidance assumes no additional debt prepayments; expected 2024 transformation costs are ~$200M. Each $100M debt prepayment yields ~$7M annualized interest savings, or $0.03 EPS.