Equifax Inc at Robert W Baird Global Consumer, Technology & Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jeffrey Meuler - William Blair & Company - Analyst : We'll start with the largest and fastest growing and highest margin segment. Your workforce solutions segment that includes the employment and income verification business, It's over half of EBITDA now. The key EBITDA growth driver of the company, let's start with the records growth. It's been a significant driver of revenue growth. It's been a good news story. Just talk about like what's driving it, the size of some of the recent wins, and the timing for them to onboard, and the records pipeline?

Question: Jeffrey Meuler - William Blair & Company - Analyst : I want to talk about those other kind of factors because to me, the profit and revenue figures of the business have been great records growth remains good. But the monetization growth per record lately has not looked as good, including in Q1. Let's zoom in on like mortgage outperformance because you have the records growth. You have pricing on top of it, and it looks like they net down to mortgage outperformance. That's like less than those two combined. I'm so [I'm not disclosing any of those].

Question: Jeffrey Meuler - William Blair & Company - Analyst : I mean, do you dispute that there's that that's not the case? You give us mortgage outperformance?You give us records growth. I have a sense of what I think pricing is doing. So it looks like there's some sort of headwind that's netting against it or maybe we're not seeing and I know you're rolling off the ramp of Morgan's 36, but it doesn't seem like we're seeing the product and the penetration, factors contributing to growth in the most recent quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, EFX.N - Equifax Inc at Robert W Baird Global Consumer, Technology & Services Conference

Question: Jeffrey Meuler - William Blair & Company - Analyst : And if we take your twin mortgage revenue, subtract out the mortgage performance, we get the twin mortgage inquiries.

Question: Jeffrey Meuler - William Blair & Company - Analyst : Your credit research team also puts out the credit pulse data. And I know that there's a lag in terms of the full reporting for mortgage. But if I go back like three quarters, it looks like your implied 20 inquiries and mortgage are lagging the credit pulse data in terms of mortgage originations. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, EFX.N - Equifax Inc at Robert W Baird Global Consumer, Technology & Services Conference Just how do you monitor market share in the mortgage market? Are there any sort of like moves back towards manual as people look to save money in a market where they have excess staff?

Question: Jeffrey Meuler - William Blair & Company - Analyst : And we watch the relationship between credit inquiries and 20 inquiries, and they tend to be within five to six points of each other right now, you are continuing to see more shopping or some people are having a hard time closing loans. They start right. And I think that's known in the --

Question: Jeffrey Meuler - William Blair & Company - Analyst : Got it. And then as you mentioned a government within twin is a really good news story. You've had kind of like 30 to mid 40s growth for a couple of years now, including in Q1? Talking about the contract wins and the timing of them onboarding? And as you get through the redetermination benefit, where should the government growth normalize?

Question: Jeffrey Meuler - William Blair & Company - Analyst : And then the third of the Big Three is the talent or pre-employment screening. I know that there's some challenges because of weaker gross hiring activity for some white-collar professionals. But can you just comment on like the Q4 to Q1 year-over-year revenue trend because it's softened? And if we look at the jobs data for white-collar professionals, we don't see the same slowdown in gross hiring from Q4 to Q1. So just what's going on with that trend? And is there any impact from the pending consolidation of the background screening companies. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 04, 2024 / 4:15PM, EFX.N - Equifax Inc at Robert W Baird Global Consumer, Technology & Services Conference

Question: Jeffrey Meuler - William Blair & Company - Analyst : And then I think structurally a big part of the reason why investors like to own Equifax is because of the employment and income verification business, but there's also kind of this untapped earnings power at this current point in the mortgage cycle. So recap what the benefit to Equifax will be with market normalization. And I think you give it on a per fulfilled inquiry at current pricing basis. So talk about what you'd expect for a market outgrowth in mortgage come to layer on top of that.

Question: Jeffrey Meuler - William Blair & Company - Analyst : And can you just comment on the CFPB a request for inquiry or requests for information? They named kind of FleetCo and they named twin processing as two factors and you just mentioned that those are two of the like the mortgage market structural outperformance factors for Equifax.

Question: Jeffrey Meuler - William Blair & Company - Analyst : And then just talking International, we're having this conversation earlier, but I think a lot of investors, they think Experian, they think about the Brazil story. And I think TransUnion to think about the India story, what do you want investors to think about when they think about the Equifax international story?

Question: Jeffrey Meuler - William Blair & Company - Analyst : And talk about the impact on Equifax and product innovation more broadly, including in the US and EWS from the completion of the cloud transition?

Question: Jeffrey Meuler - William Blair & Company - Analyst : And then just maybe John if can give us quick soundbites on the back-end loaded guidance. Why should investors have confidence in the $4 plus of EPS in the second half versus like $3.20 in the first half? And then you hit on a free cash flow conversion, outlook, and capital allocation, priorities or they change.