TransUnion

Good morning and welcome to the TransUnion 2025 First Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Greg Marty, Vice President, Investor Relations. Please go ahead.

Good morning and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Sello, Executive Vice President and Chief Financial Officer. We posted our earnings release and slides to accompany this call on the TransUnion Investor Relations website this morning. and they can also be found in the current report on Form 8K that we filed this morning. Our earnings release and the accompanying slides include various schedules, which contain more detailed information about revenue, operating expenses, and other items, as well as certain non-GAAP disclosures and financial measures, along with their corresponding reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. Today's call will be recorded, and a replay will be available on our website. We will also be making statements during this call that are forward-looking. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements because of factors discussed in today's earnings release, in the comments made during this conference call, and in our most recent Form 10-K, Forms 10-Q, and other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statement. With that, let me turn it over to Chris.

Thanks, Greg. Let me add my welcome and share our agenda for the call this morning. First, I'll provide the highlights of our first quarter 2025 results and a brief overview of what we are experiencing across our markets. Second, I'll discuss progress toward our 2025 strategic priorities. Finally, Todd will detail our first quarter results and 2025 guidance. It will also offer perspective on how our diversified portfolio positions us to navigate current market uncertainty. In the first quarter, TransUnion exceeded financial results on all key metrics. For a fifth straight quarter, we delivered high single-digit organic revenue growth and double-digit adjusted diluted EPS growth, once again highlighting our ability to drive strong results in a subdued macro environment. Revenue grew 8% on an organic constant currency basis, above our 5% to 6% guidance. Excluding mortgage, our growth of 6% also exceeded expectations. Our U.S. market segment delivered 9% growth in the quarter. Within that, financial services grew 15% in total, and growth excluding mortgage accelerated to 9%. Across all lending types, we continue to outperform overall volume growth by driving new business wins across our solution suite. Consumer lending and auto both grew double digits, and card and banking grew mid-single digits. Activity from fintech lenders picked up, supported by improved funding and heightened consumer demand for debt consolidation products. Mortgage was up 27%, modestly above expectations due to favorable pricing, and additional non-tribureau mortgage revenue. Mortgage inquiries were down roughly 10%. Emerging verticals grew 6%, led by double-digit growth in insurance, as well as improved growth across our diversified verticals. Tech, retail, and e-commerce and telecommunications verticals accelerated to mid-single-digits growth, benefiting from improved bookings and revenue performance in our marketing and communication solutions. Tenant and employment screening grew high single digits against healthy industry volumes as we lapped the impact of our product recalibration due to revised regulations and increased new business wins. Consumer Interactive declined 1% as anticipated as we continue to turn around this segment. We expect to complete the launch of our new Framium solution later this quarter. And International grew 6% on a constant currency basis. As expected, India grew 1% as we lapped robust activity in the prior year. We remain confident in re-accelerating our growth rate in India throughout 2025, supported by growth in our non-consumer business, new business wins, and increases in consumer lending activity. The Reserve Bank of India has continued its pro-growth actions recently with another interest rate cut in April and the reauthorization of lending by several important non-bank finance companies that were restricted in 2024. We expect that lending conditions will further strengthen as the year progresses. The rest of our international markets grew high single digits, including the UK, which delivered very strong 9% plus growth. Our strong financial results supported progress against our refreshed capital allocation strategies. Our leverage ratio declined to 2.9 times, down from 3.5 times a year ago. We repurchased 10 million of shares in March and April, our first share repurchase since 2017. We anticipate greater flexibility for capital deployment, including share repurchases, as the year unfolds. We will balance capital deployment against our goal to delever below 2.5 times before funding the Mexico acquisition later this year. We achieved strong results despite subdued market conditions in the first quarter, overcoming elevated interest rates and softening business and consumer sentiment. Looking ahead, we are maintaining our organic growth guidance for the full year, balancing our strong start and conservative volume assumptions against ongoing market uncertainty. As a reminder, the high end of our guidance in February assumed subdued yet stable lending volumes over the course of 2025, underpinned by healthy conditions for both consumers and our customers. The U.S. economy entered 2025 with low unemployment, modest real wage growth, and manageable inflation. Our customers were cautiously optimistic, supported by stable consumer finances, low delinquencies, replenished deposits, and improved access to the capital markets. In the first quarter, revenue and loan volumes tracked ahead of our expectations for U.S. financial services. Volume trends remained consistent through the middle of April. Our international portfolio, including India, continues to perform well as anticipated. A continuation of these trends would support results at or above the high end of our guidance. That said, Recent proposals in the U.S. around tariffs, trade, and fiscal policy have added risk around the trajectory of employment, inflation, interest rates, and global economic growth. The 10-year U.S. Treasury rate has fluctuated over the last two months and remains elevated, although below its mid-January peak. The Fed is maintaining a cautious approach on monetary policy, opting to wait for more clarity on potential impacts of policy. We are actively monitoring market dynamics and the impact of policy changes on consumers and our customers. Now, Todd will provide additional details on our guidance assumptions, our portfolio dynamics, and how we plan to manage the business if conditions soften. I'll spend the rest of my time this morning detailing our recent progress on the three pillars of our transformation, enhancing our global operating model, completing our technology modernization, and accelerating innovation across our solutions portfolio. We continue to refine and enhance our global operating model to standardize how we operate and build scale across the organization. In 2025, we plan to further develop our best-in-class global capability centers and improve collaboration across our functional matrix to accelerate solutions innovation. A world-class global operating model requires strong leaders, and we made key additions in the quarter. Tiffany Chambers is our new Chief Operations Officer. She joins us from Bank of America, where she most recently served as Chief Operating Officer of its Retail Banking Division. Prior to that, she served as Chief Operating Officer for the bank's Global Banking and Markets, Risk, Finance, and Infrastructure Technology team. At TransUnion, Tiffany will focus on delivering premium experiences for consumers and customers, overseeing activities including consumer relations, customer delivery and relationship management, TU's global capability centers, and our procurement and real estate. Mohammad Abdul-Sadeq has also assumed the role of Chief Global Solutions Officer. He joins us from MasterCard, where he held several executive roles and served on the company's management committee. In his last position, Mohammed was responsible for the Business and Markets Insight Group, where he developed and commercialized products that grew into a multi-billion dollar operation. The group delivered data, insights, and analytic solutions across over 100 countries using MasterCard and customer data. He was also responsible for the global consulting business that provided advisory services to financial institutions and retail and commerce organizations. Mohammed's focus will be to advance innovation across TransUnion's global product portfolio. Now, Tiffany and Mohammed represent the high quality of talent that we're attracting as we scale our business to drive greater innovation and service to our customers and consumers. Our operating model optimization complements the next pillar of our transformation, which is modernizing our technology into a global configurable cloud-based platform. We delivered on key milestones in the first quarter to migrate U.S. credit customers to One True. We are initially focused on dual running over 90 U.S. credit customers on One True and our legacy platforms simultaneously. The One True platform is managing well the scale and complexity of these many challenging workloads, and we've planned additional rollouts in the coming months. We are achieving notable performance and innovation improvements on the new platform, including over 50% faster processing speeds, enhanced cybersecurity and compliance, and rapid development and deployment of new scores and attributes. This quarter, we launched a proprietary AI powered tool for our developers called One True Assist. One True Assist leverages advanced language models to help our developers auto-generate repetitive code, convert code between languages, and identify and remediate security vulnerabilities. One True Assist can be used across the One True software development lifecycle, and we're already seeing a 20 to 50% lift in our developers' productivity from leveraging the tool. We expect to expand our adoption and use cases of this tool throughout the year. And finally, we began mobilizing our teams internationally for the migration of Canada, UK, and the Philippines to one true in 2026. We will begin key capability development over the course of this year. And our final transformation pillar is accelerating innovation and growth across our solutions. We continue to make strong progress across our product suites. In February, we discussed the reinvigoration of our consumer interactive business. Throughout the quarter, we performed initial testing and consumer migrations to our new freemium offering in the U.S., positioning us for a full rollout by the end of the second quarter. We also completed the acquisition of Minivo on April 1st. Minivo's centralized decisioning infrastructure enables lenders and banks to deliver highly personalized credit offers to consumers through freemium websites and other online publishers. we're already adding new publishers and top tier lenders to the platform to complete a robust marketplace. And we experienced strong demand for our true IQ analytics suite, including a sizable pipeline and increasing revenue realization for data enrichment. We also continue to build out functionality for our end to end credit marketing suite that we call advanced acquisition. We launched Credit Strategy Studio's beta program with multiple customers and with many more in the pipeline. In fraud, we onboarded new customers onto TrueValidate integrated solutions with increasing customer interest. We also launched our new global device risk machine learning model, which delivers a material lift in predictiveness for account origination and some account management and login use cases. Marketing also delivered a solid first quarter. with strong bookings as well as strong retention rates during a key renewal season for many of our true audience customers. And Trusted Call Solutions had another strong quarter of broad-based growth across the verticals. We remain on track to deliver $150 million of TCS revenue in 2025, up from $115 million in 2024. And now Todd will provide further details on our first quarter financial results and our full year 25 outlook. Todd?