Equifax, the multinational listed on the New York Stock Exchange since 1971, recorded an increase in revenues of 11% in the fourth quarter of 2023, which reached 1.327 billion dollars.
A figure considered very positive by the company, especially given the critical issues caused by the increase in rates in the mortgage segment.
Based on the information released by the group, growth in revenues was noted for all companies:
- Workforce Solutions rises 10%, with strong non-mortgage revenue growth of 17%
- Verification Services marks a significant increase of 27% with strong growth in the government sector
- USIS in the 4th quarter at +5%, with mortgage revenue growth of 16% and non-mortgage revenue growth of 3%
- Even at the level of international revenues, the fourth quarter improved by 20%
- Strong new product innovation leveraging the new EFX Cloud with new product viability of 14% in Q4
- Looking at the overall figure for 2023, growth is more limited and stops at 5.265 billion dollars (+3% compared to 2022). The significant 17% drop in mortgage sector revenues had a global impact.
- Major milestones achieved in $210 million cloud spending reduction plan in 2023
- Full-year 2024 guidance calls for revenue of $5.720 billion, up 8.6%, with strong non-mortgage local currency revenue growth of more than 10.5%
Mark W. Begor, Chief Executive Officer of Equifax states: ” EBITDA margins are expected to expand to 33.3%, reflecting organic revenue growth and additional cost savings from cloud spend reduction plans as well as increased costs from normalization of incentive plans. We have strong momentum entering 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 launches that “Only Equifax can deliver and invest in new products, data, analytics and AI capabilities that are expected to drive growth in 2024 and beyond. We are excited about the new Equifax and remain confident in our long-term revenue growth picture of the ‘8-12% which should provide higher margins and free cash flow. ”
