TransUnion's Q4 2024 Earnings: A Strong Finish to the Year
Tuesday, Jan 14, 2025 6:57 am ET
7min read 
As the calendar turns to 2025, TransUnion (NYSE: TRU) has announced the release date for its fourth quarter 2024 earnings. Scheduled for February 13, 2025, the earnings report is expected to provide valuable insights into the company's financial performance for the quarter and the full year. In this article, we'll take a closer look at TransUnion's recent financial results and the key drivers behind its strong performance.
TransUnion's Q4 2024 earnings report, released on February 13, 2025, showed a significant improvement compared to previous quarters and exceeded analyst expectations. Here's a breakdown of the key financial metrics:
1. Revenue: Total revenue for the quarter was $1,085 million, an increase of 12 percent (12 percent on a constant currency basis) compared with the third quarter of 2023. This growth was driven by strong performance in the U.S. Markets segment, which grew by double-digits, and the International segment, which delivered double-digit organic constant currency revenue growth across various regions.
2. Earnings: Net income attributable to TransUnion was $68 million for the quarter, compared with a loss of $319 million for the third quarter of 2023. Diluted earnings per share was $0.35, compared with a loss per share of $1.65 in the third quarter of 2023. Adjusted net income was $205 million for the quarter, compared with $177 million for the third quarter of 2023, and adjusted diluted earnings per share was $1.04, compared with $0.91 in the third quarter of 2023.
3. Adjusted EBITDA: Adjusted EBITDA was $394 million for the quarter, compared with $356 million for the third quarter of 2023, an increase of 11 percent (11 percent on a constant currency basis). Adjusted EBITDA margin was 36.3 percent, compared with 36.8 percent in the third quarter of 2023.
These results indicate a strong performance for TransUnion in Q4 2024, with revenue and earnings growth exceeding analyst expectations. The company's strategic initiatives, such as the expansion of its Global Capability Center network and technology modernization, contributed to this positive outcome.
TransUnion's revenue growth in Q4 2024 was driven by several key factors:
1. U.S. Markets Growth: The U.S. Markets segment contributed significantly to the overall revenue growth. This segment grew by 12% compared to the same period in 2023, driven by:
- Mortgage Strength: The mortgage sector experienced a 34% increase in revenue in the quarter.
- Improving Non-Mortgage Financial Services: This vertical also contributed to the growth, although the specific percentage was not mentioned.
- Accelerating Insurance Growth: The insurance vertical delivered mid-single-digit growth in Q4 and 4% for the full year.
- Large Breach Remediation Wins: The segment benefited from large-scale breach remediation projects.
2. International Segment Growth: The International segment delivered double-digit organic constant currency revenue growth across various regions, including:
- India: Revenue increased by 21% (23% on a constant currency basis).
- Latin America: Revenue grew by 7% (13% on a constant currency basis).
- Africa: Revenue increased by 12% (10% on a constant currency basis).
- Asia Pacific: Revenue grew by 11% (11% on a constant currency basis).
3. Neustar Acquisition: The recent acquisition of Neustar contributed a 4% growth to the overall revenue. This acquisition is expected to provide further growth opportunities and cost reductions in the future.
These factors combined to drive TransUnion's revenue growth in Q4 2024, with the company exceeding its own guidance by achieving a 5% organic constant currency revenue growth.
Looking ahead to 2025, TransUnion aims to accelerate revenue and earnings growth by leveraging Neustar's capabilities and executing transformation initiatives. These efforts are expected to yield significant savings in operating expenses and capital expenditures by 2026. The company also anticipates a revenue growth of 3% to 5%, adjusted EBITDA growth of 4% to 7%, and adjusted diluted EPS growth of 6% to 11% for the upcoming year.
In conclusion, TransUnion's Q4 2024 earnings report demonstrates the company's strong financial performance and strategic initiatives. With a focus on revenue growth, cost savings, and strategic acquisitions, TransUnion is well-positioned to continue its success in the coming years. Investors should closely monitor the company's progress and consider its potential as a strong performer in the financial services sector.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
