Equifax Delivers Fourth Quarter 2023 Revenue growth of 11% to $1.327 Billion Amid Challenging Mortgage Market

By Staff Writer Atlanta Trend

• Feb 27, 2024

"Equifax performed extremely well in the fourth quarter against our EFX2025 strategic priorities in a very challenging mortgage market,” said Mark W. Begor, Chief Executive Officer. The company delivered revenue of $1.327 billion, up a strong 11% and Adjusted EPS of $1.81 per share up 19% versus last year, from strong revenue growth and execution of our 2023 $210 million Cloud spending reduction plan. Our non-mortgage business, which was over 80% of Equifax revenue in the fourth quarter, delivered very strong broad based 14% local currency revenue growth, from continued strong new product performance with record New Product Vitality Index of 14%. Workforce Solutions, our largest and fastest growing business, delivered an exceptional quarter with very strong 27% non-mortgage Verification Services revenue growth led by the Government and Talent businesses. USIS delivered revenue growth of 5% from strong 16% mortgage revenue growth and International had a strong quarter, finishing with organic local currency revenue growth of 6%." 

"We are issuing our full-year 2024 guidance midpoint expectation for revenue of $5.720 billion, up 8.6% on a reported basis and organic local currency growth of 8.5%. Non-mortgage local currency revenue growth is expected to be over 10.5% versus 2023 and Adjusted EPS of $7.35. While Equifax continues to execute well against its EFX2025 strategic priorities, our 2024 guidance reflects an expectation of an over 16% decline in our 2024 U.S. mortgage credit inquiries, compared to down 34% in 2023, with first half mortgage credit inquiries weaker than second half. Across USIS and Workforce Solutions, we expect to outperform the U.S. mortgage market by about 24%. EBITDA margins are expected to expand to 33.3%, reflecting organic revenue growth and the additional cost savings from Cloud spending reductions plans as well as higher costs from normalization of incentive plans.

We have strong momentum as we enter 2024 and are confident in the future of the New Equifax as we deliver strong double-digit non-mortgage revenue growth, finalize our Cloud transformation, leverage our new Cloud capabilities to accelerate new product roll-outs that 'Only Equifax' can provide, and invest in new products, data, analytics, and AI capabilities which are expected to drive growth in 2024 and beyond. We are energized about the New Equifax and remain confident in our long-term 8-12% revenue growth framework that is expected to deliver higher margins and free cash flow."