Q3 2021 Equifax Inc Earnings Call

Greetings and welcome to the Equifax third quarter 2021 earnings Conference call.

At this time all participants are in a listen only mode.

A question and answer session will follow the formal presentation.

What should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Dorian Hare senior Vice President and head of corporate Investor Relations. Thank you you may begin.

Thanks, and good morning, welcome to today's conference call.

I'm joined here with me today are Mark <unk>, Chief Executive Officer, and John Gamble, Chief Financial Officer.

This call is being recorded an archive archive recording will be available later today in the IR calendar section of the news and events tab on our IR website.

<unk> Www dot investors expect.

Got it.

During the call today, we'll be making reference to certain materials that can be also found in the presentations section of the news and events at our IR website. These.

These materials are labeled Q3 2021 earnings conference call.

Also we will be making certain.

Certain forward looking statements, including fourth quarter and full year 2021 guidance as well as a framework for 2022 to help you understand equifax and its business environment.

Statements involve a number of risks uncertainties and other factors that could cause actual results to materially differ materially from our expectations.

Certain risk factors that may impact our business are set forth in our filings with the SEC, including our 2024 and eight and subsequent filings.

So we will be referring to certain non-GAAP financial measures, including adjusted EPS attributable to Equifax, and adjusted EBITDA, which will be adjusted for certain items that affect comparability.

Building of our underlying operational performance.

These non-GAAP measures are detailed in reconciliation tables, which are included with our earnings release and also posted on our website now I'd like to turn it over to Mark. Thanks, Duane and good morning, we had a very strong third quarter and first nine months of 2021 and continuation of our strong outperformance last.

With record revenue in the quarter of $1 3 billion, which was up over 14% with core non mortgage market and non U C. ERC claims revenue growth of 20%.

We are executing extremely well against the critical priorities of our FX 2023 strategy as we've highlighted on slide four.

Our focus on leveraging the new Equifax cloud for innovation, new products and growth is clearly driving our strong financial results.

Our revenue growth has accelerated from 3% in 2019 as we were recovering from the 2017 cyber event and investing heavily in our <unk> cloud transformation to 17% last year.

We are on track to deliver 19% core growth this year at the midpoint of our revised 2021 guidance.

More importantly, our core growth, which excludes the impact of the mortgage market unemployment claims ERC related revenue is expected to accelerate to 21%. This year a powerful figure that reflects the strength of our underlying business.

Model any FX 2023 growth strategy.

Not only is our core growth accelerating above historical levels during 2020, one and challenging COVID-19 markets and more recently.

Climbing mortgage market. We are also expanding <unk> beyond our traditional credit Bureau routes to a more diverse data analytics and technology company.

Assessments of the Equifax cloud, new data assets and <unk>, along with reinvesting our outperformance in bolt on M&A in areas, such as talent government and I'd and fraud.

We are quickly pivoting from building the equifax cloud to leveraging and for innovation new products that will position, the new equifax for stronger and more diversified growth in the future.

Our FX 2023 growth strategy remains our compass for the future and drives all of our top and bottom line growth initiatives as we move towards 'twenty two and beyond.

Turning to slide five.

<unk> had a very strong quarter revenue at $1 2 billion was up 14, 5% with organic constant currency growth up a strong 12.

12%.

You almost 15% topline growth was off a strong 19% growth last year in a much stronger mortgage market.

This was our seventh consecutive quarter of double digit revenue growth more importantly, our core growth was up a strong 20%.

Our U S <unk> businesses of workforce solutions, and <unk>, which together represent.

Almost 75% of Equifax revenue again drove our growth delivering 17% revenue growth. Despite the 21% decline in the U S mortgage market in the quarter.

Non mortgage revenue was up over 30% and organic non mortgage revenue was up 24% strengthening sequentially.

16% and 20% we saw in the first two quarters of the year.

Third quarter Equifax, adjusted EBITDA totaled $404 million up slightly from third quarter last year with margins of 33% as.

As expected margins were down versus 2020 due to the inclusion of cloud technology transformation costs of 40.

For $1 billion and our adjusted results for the quarter.

Which were excluded last year and redundant cloud transformation systems costs of $15 million. These.

These costs related to cloud tech transformation negatively impacted EBITDA margins by almost 500 basis points.

Adjusted EPS of $1 85, a share was down.

$5 from last year adjusting for the cloud transformation costs of 45 million or <unk> 27, a share adjusted EPS would have been up a strong 11%.

We continue to make significant progress executing the FX cloud data and technology transformation.

In the quarter, we completed 4000 <unk>.

<unk> migrations for a total of 15400 migrations completed so far this year.

In September alone USAA has completed over 900 customer migrations since.

Since the beginning of the transformation, we've completed almost 97000 <unk> migrations.

Migrations $3 5 million consumer migraine.

Migrations and $1 million data contributor migrations.

We remain on track and confident in our plan.

We continue to expect the north American transformation to be principally complete in early 'twenty two with the remaining customer migrations broadly completing by the end of next year.

International transformation will follow.

So being principally completed by the end of 2023 with some customer migrations continuing into 2024.

We're still in the early days of leveraging the cloud, but remain confident that will differentiate us commercially expand our NPI capabilities accelerated our top line and expand our margins and the growth in cost savings.

Two and beyond.

Our NPI performance also continues to accelerate in the quarter, we leased 30, new products and we still expect our vitality index to accelerated from 5% last year to over 8% in 2021.

Given our very strong third quarter performance, we are increasing our full year revenue guidance by Approx.

Proximately 320 basis points or $131 million at the midpoint of a range between $4 9 billion to $4 91 billion up 19% from last year and increasing our full year adjusted EPS guidance by <unk> 22 per share to a midpoint of $7 57 per share which.

Adjusting for technology transformation cost implies a 23% growth in EPS.

This includes our expectation that the U S mortgage market as measured by credit inquiries will decline just over 7%. This year with the bulk of the returned normalization in the second half, which we expect to be down around 20%.

Roughly two thirds of the 320 basis point increase in our revenue growth framework to 19% is from organic business performance with the balance from the acquisitions of <unk> healthy FX and Tele track, which we expect to add about $45 million to revenue in the fourth quarter.

In the third.

Quarter Equifax core revenue growth the green sections of the bars on slide six grew a very strong 20% the third consecutive quarter of core growth at or above 20%.

Non mortgage growth in AWS, and <unk> and growth in international drove about 900 basis points of.

For revenue growth.

Excluding acquisitions and FX with mortgage outperforms, primarily in workforce solutions, driving about 800 basis points of organic core growth in the quarter.

As we move through 'twenty, two and 'twenty three we expect to continue to see strong and balanced core growth, reflecting the benefits of the new FX cloud.

The core accelerated NPI.

<unk> strong non mortgage growth, both from organic growth and acquisitions as well as continued strong outperformance from workforce solutions.

Turning to slide seven workforce solutions had another exceptional quarter delivering revenue of $508 million, which was up 35%.

Percent.

This is the first quarter workforce solutions has delivered over half a billion dollar of revenue in a single quarter a big milestone.

This was against a very strong 57% growth last year.

Adjusted EBITDA margins were up over 50.

<unk>, 54%.

Non mortgage revenue at workforce solutions was up over 48% with organic non mortgage revenue up 41% the strength of workforce solutions and uniqueness of their twin income and employment data set was a clear again in the third quarter.

Workforces verification services revenue of $403 million was up a strong 30.

34%.

Verification services mortgage revenue grew 22% in the quarter. Despite the 21% decline in the mortgage market with the AWS outperformance driven by increased records penetration and new products.

Importantly, verification services non mortgage revenue was up 55% in the quarter.

<unk> consistent with the very strong growth, we saw last quarter.

Our government vertical which provides solutions to federal and state governments that supportive assistance programs, including food and rental support grew over 20% in the quarter.

Government remains one of our largest non mortgage segments with attractive growth potential in the future and represents about one third.

Non mortgage verification revenue.

Our new SSA contract went live this quarter at relatively low startup volumes and we expect to see it ramp as we move through 2022.

We expect new products. The addition of <unk> and expanded federal and state social services to fuel growth in our government vertical in the future.

<unk> talent solutions, which provides income and employment verification as well as other information for the hiring and onboarding processes through our AWS data hub had another outstanding quarter from customer expansion in NPI is growing over 100%.

Talent solutions now represents almost 30% of non mortgage verification revenue.

Third you know over 75 million people change jobs in the U S annually with the vast majority having some level of screening as a part of the hiring process the.

The addition of accuracy insights and our new partnership with a national student clearinghouse will fuel growth.

New products in this important vertical.

The non mortgage.

And as you were lending business, principally in banking and auto showed strong growth as well of about 90% in the quarter, both from deepening penetration with lenders and from some recovery in these markets. Although auto has been impacted by inventory shortages.

Employer services revenue of $105 million was up $30 million in the quarter.

This is an important growth engine for workforce solutions that also delivers records.

Combined our unemployment claims and employee retention credit businesses had revenue of about $65 million up about $14 million from last year.

Potential declines in the UC revenue in the quarter were more than offset by ear, ERC, which grew substantially.

<unk> sequentially as we support businesses in obtaining federal employee retention credit payments.

Employer services, non UC and <unk> businesses had revenue of about $40 million up 60% with organic growth of about 35%.

Our <unk> business, driven by our new <unk> anywhere.

Our product continued to show very strong growth up about 80%.

<unk> business is now almost half of employer services, non UC and ERC revenue.

Reflecting the growth in <unk> and the return to growth of workforce analytics, we expect expect employer services non UC and <unk> businesses.

To deliver total growth of about 40% inorganic growth of about 25% in the year.

Reflecting the uniqueness of the twin data strong verifier revenue growth and operating leverage resulted in adjusted workforce solutions EBITDA margins of 54, 3%.

The decline versus last.

Year driven.

Driven by investments in the tech transformation as well as redundant systems costs and as well as significant investments in data Onboarding sales and marketing to continue to drive workforce solutions growth.

Rudy floater the workforce solutions team delivered another outstanding quarter and are positioned to deliver.

<unk> to 'twenty, one 'twenty two and beyond.

Turning now to <unk> their revenue of $380 million was up slightly from last year.

Total <unk> mortgage revenue of $148 million was down 17%, while mortgage credit inquiries were down 21% slightly better than the down.

We're a very 3% we expected in July.

Usia's outperformance versus the overall market was driven by growth in marketing and that monitoring products.

Importantly, non mortgage revenue of $240 million grew almost eight sorry, 16% with organic growth of over 9%.

Year to date.

'twenty mortgage revenue was up a strong 17% and organic non mortgage revenue growth is over 10%.

Banking insurance commercial and direct to consumer were all up over 10% in the quarter.

<unk> was up almost 10% organically and up over 75% in total with the inclusion of our account acquisition.

None.

Auto was up mid single digits, despite supply pressures and telco was down just over 5%.

Financial marketing service revenue, which is broadly speaking our offline our batch business was $55 million in the quarter and up about 20%.

The strong performance was driven by.

Marketing related revenue, which was up over 20% in I'd and fraud revenue, which grew over 15%.

In 2021 marketing related revenue is expected to represent about 40% of the Fms revenue identity and fraud above 20 and risk decisioning about 35%.

U S sales team delivered record.

Record winds up over 20% versus last year, and 40% sequentially in the quarter New deal pipeline in U S remains very strong.

During the quarter U S. I S acquired Teller track U S leader in alternative credit data Telecom track is being consolidated with data <unk>, our specialty finance credit reporting agency.

CBOE acquired in 2018 to expand our capabilities in the SaaS growing alternative data space, serving Unbanked and Underbanked U S consumers.

<unk> adjusted EBITDA margins were 40% in the quarter flat sequentially with second quarter.

Similar to the second quarter the decline in margins in the quarter versus last year.

<unk> was due to both cost related to cloud transformation, which include the cost of redundant systems and inclusion of our adjusted results of the technology transformation costs, which are being excluded in 2020 and the expansion of our investments in sales and marketing as well as new products to leverage both the strengthening U S market and accelerate new product introductions to drive.

Revenue growth in 'twenty, two and beyond.

Turning to international there revenue of $245 million was up 10% on a local currency basis and up 100 basis.

<unk> points sequentially.

This was the fourth consecutive quarter of growth in our global markets. Following the Covid pandemic impacts.

Asia Pacific, which is principally our Australia.

Dalia business performed well in the quarter with revenue of 89 billion up about 7% local currency.

Australia delivered this growth despite the extended Covid lockdowns in many portions of the country.

Australia consumer revenue continued to recover up 3% versus last year and about flat sequentially.

Our commercial businesses.

Combine online and offline offline revenue was up 8% in the quarter fraud and identity was up 13% following 22% growth in the first half.

European revenues of $68 million were up 9% in local currency in the quarter and flat sequentially, our European credit reporting business was up about 5%.

<unk> with continued growth in both the UK and Spain.

Our European debt management business revenue increased by about 21% in local currency off the lows, we saw last year during the Covid recession.

Canada delivered revenue of $44 million, a quarter up over 8% in local local currency, despite a weakening Canadian mortgage.

<unk> market that was down 15%.

Canada experienced strong growth in fintech, while supply issues continue to impact our auto business.

Latin American revenues of $45 million grew 16% in the quarter in local currency, which was the third consecutive quarter of growth coming out of Covid.

We continue to see the.

The benefit in Latam of the strong new product introductions introduced over the past three years.

International adjusted EBIT margins of 26, 7% were down slightly from $27 three in the second quarter. The sequential decline was driven by incremental technology costs in Australia, and Canada as they accelerate their excel.

Treat their cloud transformation programs.

The decline in the quarter was principally due to costs related to the cloud transformation, both the cost of redundant systems and inclusion in our adjusted results of the technology transformation costs, which were being excluded last year.

Margins were negatively impacted the quarter by also negatively impacted.

During the quarter by our increased investments in sales and marketing and new products.

Global consumer solutions revenue of $82 million was down 6% on a reported basis and 7% in local currency basis in the quarter slightly above our expectations. We saw growth of about 2% in our global consumer direct business, which sells directly to consumers through equifax.

<unk> dot com and represents a little over half of Gcs revenue.

The decline in Gcs revenue in the quarter was again driven by our U S lead Gen partner business, we expect the gcs partner business in Gcs business overall to returned to growth in the fourth quarter.

Gcs adjusted EBITDA margins of 23 four.

Our percent were up sequentially, reflecting lower operating costs.

A decline versus last year was principally driven by revenue declines.

Turning now to slide eight workforce solutions continues to power Equifax is clearly our strongest fastest growing and most valuable business with strong 35% growth in the quarter up 57% growth a year.

Equifax.

Core revenue growth was 42% driven by the uniqueness of between income and employment data scale of the twin database and consistent execution by Rudy and his team.

Dws's ability to consistent consistently and substantially outgrow their underlying markets is driven by three factors.

First growing the work number database.

Year ago at the end of the third quarter Twin reached 125 million active records, an increase of 12% or 13 million records from a year ago and included 97 million unique records at 97 million Uniques, we now have over 60% of non farm payroll, which makes our twin dataset.

Valuable to our customers with higher hit rates we.

We are now we're seeing record every pay period from $1 9 million companies up from $1 billion. When we started the year and 27000 contributors a short two years ago.

The exclusive agreement with a major payroll processor that we announce.

On our February call went live in the third quarter and contributed to this growth.

Our strong momentum continues as we signed another large payroll processor last week on an exclusive basis that will come online in the coming months.

We also expect to add further payroll processors in the coming months as.

As a reminder, almost 60% of our records.

<unk> are contributed directly by employers to which AWS provides comprehensive employer services like UC claims W. Two management nine what's the ERC HSA and other HR and compliance solutions.

Our acquisitions of higher Tech IQ verified healthy FX this year stretch.

And our ability to deliver unique HR services, particularly through relationships with payroll processors and HR software companies.

These partnerships have been built up over the past decade by the workforce solutions team.

The remaining 40% of our records are contributed through partnerships with payroll providers and.

Strength off square companies, most of which are exclusive.

We still have substantial room to grow our income and employment database and expect to continue to add new data contributors as well as reach agreements with several additional payroll processors in the fourth quarter that their records on an exclusive basis to twin in 2022.

Beyond the over 50 million non farm payroll records not yet into twin database. We're focused on data records from the 40% to $50 million gig workers and around $30 million pension recipients in the U S marketplace to further broaden the twin database, we have plenty of room to grow twin.

Second increasing our average.

<unk> transactions or average revenue per transaction through new products and pricing our existing products to value recognizing the depth of information twin allows us to deliver to customers' workforce solutions, new product pipeline is rapidly expanding as our teams leveraged the power of our new Equifax cloud capabilities.

And third.

Revenue, increasing our penetration in the markets, we serve and expanding into new markets for.

For example, we continue to increase our penetration in the mortgage market at the end of 2020 workforce solutions received an inquiry and almost 60% of completed mortgages up from 55% in 2019.

This 500 basis point increase.

<unk> increase was a big step forward, but we still have plenty of runway to expand the customers using twin and mortgage.

We're also seeing substantial growth in twin and other credit markets, including card and auto as these verticals take advantage of the unique lift from twin income and employment data and the 60% hit rates with our database.

Growing system to system integrations as another key lever in driving both increased penetration increasing the number of polls per transactions during the quarter about 75% of twin mortgage transactions were fulfilled system. The system up over <unk> from 32% in 2019, and again, we still have plenty of growth potential.

<unk>.

Workforce solutions is performing exceptionally well with attractive above market and above equifax growth rates and margins that we expect to continue in the future.

Slide nine highlights the core growth performance of our U S. <unk> mortgage businesses workforce solutions in U S. I S.

Our combined USB.

<unk> businesses delivered 3% revenue growth in mortgage in the third quarter outperforming the mortgage market by 24 basis points with the market down 21%.

This strong performance out performance was again driven by workforce solutions with core mortgage growth of 43% enabled by the multiple drivers that I just.

Here.

Slide 10 provides an update on new product innovation, leveraging the equifax cloud and our differentiated data a key driver of our current and future.

Growth.

In the quarter, we delivered 30, new products with 150, new products in the market. So far this year, which is up 18% from the 96, we deliver at the same time.

Discussing last year.

We continue to expect our 2021 vitality index defined as a percent of revenue delivered from NTR MPI launched in the past three years to be up opex to be over 8%.

In the third quarter, we launched significant new products, we expect to continue to drive growth in 'twenty two and beyond.

<unk> payroll exchanged.

That went live as <unk> product that supports verifications of Ssi and SSD die social services, delivering critical and income and employment status based on program requirements.

One view with data X is a new integrated consumer credit report that redefines, how we deliver display and provide insights to our customers.

It also sets the stage for integrating non traditional credit data in a single view solution for our customers.

Alternative data from data ex pellet track NC, plus rental payments and other sources are a critical priority for equifax and we expect to continue to drive NPA Ntis in this space in the future.

Digital identity Trust too.

<unk> product provides businesses with a comprehensive passive identity verification service that delivers a trust do not trust recommendation.

Across both physical and digital identity vectors this product will leverage count data by year end.

Market mix Premier solution enables the ability for <unk> to access.

<unk> market share and size of liquidity across Geographics.

This provides quick identification of targeted growth markets deploy spend across branch sales and marketing efforts.

And lastly, the new Equifax affordability product in Australia uses bank transaction data and sufficient categorization to provide an affordability Utica.

Customers, while removing friction for the consumer.

We're clearly focused on leveraging our new equifax cloud capability to drive our NPI Rollouts and new product revenue in 'twenty, one and beyond growing that NPI is central to our <unk> 2023 growth strategy.

As detailed on slide 11 in 2021.

The strong outperformance in strategic and accretive bolt on acquisitions that strengthen our position in existing growth markets that allow us to enter new markets with new capabilities.

Our 2021 acquisitions at $300 million plus.

Plus synergies to our run rate revenue.

We are focused on executing acquisitions that are accretive.

To our long term revenue growth and margins and deliver attractive shareholder return returns.

Our priorities for M&A are clear and aligned around number one expanding our differentiated data which is at the core of Equifax. We have scale unique datasets that we want to expanded leverage with new data elements to drive enhanced decisioning for our customers.

All of our acquisitions deliver new and differentiated data and more data drive better decisions.

Second expanding and widening our largest and fastest growing business workforce solutions is a priority for our M&A.

The <unk> sites higher Tech Lcs healthy FX at ICU verify acquisitions strengthened workforce and physician EW.

As for future outperformance.

And last broadening our I'd and fraud capabilities in the fast growing digital and E Commerce space.

Another M&A priority accounts strongly advanced our capabilities in this fast growing space.

We closed the <unk> acquisition on October one and are focused on.

<unk> solutions in growth.

<unk> sites and our new partnership with the National student clearinghouse or big step forward in our strategy to build out an AWS data hub centered off our almost $500 million historical twin data records to address the fast growing talent and government markets.

As detailed on slide 12, combining our.

<unk>, new twin data with accuracy insights criminal and healthcare Credentialing and sections data along with other partner data assets, including exclusive partnership for College and University data, we entered into in the third quarter with a national student clearinghouse allows workforce solutions to deliver the most complete real time 360 degree view.

Few of the prospective employee or applicant for government benefits available in the market.

The talent solutions and government verticals offer large and growing markets for our workforce solutions business through the AWS data hub we.

We estimate an addressable market of $5 billion in the U S hiring space and on boarding process.

With around $75 million, new employees on boarded annually in the U S.

Workforce solutions government vertical is focused on delivering data solutions to support the federal and state benefit programs as well as law enforcement agencies.

This is a substantial and growing sector that we estimate to have an addressable market of about $2 billion.

Actress insights.

<unk> strongly accelerates our ability to penetrate these large and fast growing tamps.

Insights.

Dissipated to generate $150 million of run rate revenue during 2021 and to grow on a standalone basis and over 15% annually.

We also anticipate building towards approximately 75.

$5 million in revenue synergies by 2025, leveraging the FX cloud integrate arris insights rich people based risk intelligence data.

In the FWS data hub to formulate new multi data solutions and through cross selling efforts.

Acquiring empress insights and partnering with the national student clearinghouse.

<unk> provides strong pillars for workforce solutions growth in fast growing markets going forward.

Slide 13 highlights our focus on adding alternative data to our database focused on the $60 million on our Underbanked population in the United States.

According to our Federal Reserve study, 6% of U S. Adults do not have a checking.

Savings or money market account, although two fifths use some form of alternative financial service.

For over 16% of adults have a bank account, but also using alternative financial service product generally at much higher cost.

Providing services that help bring these underserved populations into the financial mainstream is core to our purpose.

Helping people live their financial best and is an important priority for our customers.

Our acquisition of <unk> in September, which we are combining with our data X business creates a leading U S specialty consumer reporting agency with data on more than $80 million in file Unbanked and Underbanked and credit rebuilding.

Consumers.

Our national consumer Telecom and utilities exchange partnership is another unique datasets focused on this space that has more than 420 million records and 250 million consumers, helping our customers to expand underwriting to know hit or thin file customers.

We are focused.

So expanding our unique alternative data from sources, including specialty finance companies alternative lenders telco companies cable and satellite TV providers municipalities.

<unk> and utilities to drive growth in the fast growing alternative data markets and we'll continue to look for opportunities to strengthen our alternative databases through partnerships and M&A.

Now I'd like to turn it over to John to discuss our outlook for the rest of the year our increase in guidance for 2021 as well as our share our early read on 2022 assumptions and our financial framework for 2022.

Thanks, Mark as Mark discussed our <unk> results were very strong and much stronger than we discussed with you in July with revenue.

$50 million higher than the mid point of the expectations. We shared for perspective, the strength was driven by our USB <unk> businesses, principally workforce solutions and also USAF workforce solutions verification services was stronger than discussed in July principally.

Non mortgage and talent solutions card and auto as well as to a lesser extent in mortgage.

About <unk> solutions employee retention credit in unemployment claims revenue was stronger than we discussed in July we expect the strength in ERC to continue in the fourth quarter.

<unk> was also somewhat stronger than we discussed in July the.

The strength in mortgage relative to our discussion in July was partially a reflection of the mortgage market being down 20.

<unk>.

Versus the down 23%, we discussed in July workforce solutions outperformance relative to the mortgage market.

It was also stronger than we expected.

This strong revenue drove upside in adjusted EPS relative to the expectations that we shared in July.

Before discussing our increased guidance for 2021 and provide.

One framework for you to consider for 2022 lets briefly discuss our assumptions for the U S mortgage market.

As shown on slide 14, we are expecting the 21% year to year decline in U S mortgage credit inquiries that we saw in the third quarter to continue in the fourth quarter with the fourth quarter down about 20%.

This results in <unk>.

21 U S mortgage market credit inquiries being down just over 7% from 2020 slightly better than the down somewhat under 8%. We discussed with you in July for.

A frame declined about 15% from 2021, the 15% decline versus 2021 as most substantial in the first half of 2022, given the significant slowing we have seen in the U S mortgage market already in the second half of 'twenty one.

Our assumed level of 2022 U S mortgage market credit inquiries remained over 10.

And above the average levels you saw over the 2015 to 19 period.

The left side of Slide 15 provides a perspective on the number of homes that would benefit by 75 basis points or more from refinancing their mortgage at current rates.

Despite the substantial refinancing activity that has occurred over the past year.

10% increases in U S treasuries, the number of U S mortgages that could benefit from our refinancing remains at a relatively strong level of about $12 million.

Home prices have appreciated significantly over the past 18 months, which has provided many homeowners with cash out refinancing opportunities, which in past cycles has led to increased refinancing activity from borrowers.

And current perspective based upon our most recent data from April mortgage refinancings remain at just under $1 million a month.

As shown on the right side of slide 15, the pace of existing home purchases continues at historically very high levels.

The strong new purchase market is expected to continue throughout 'twenty, one 'twenty two.

2022 assumption for your U S mortgage credit inquiries assumes that we see purchase mortgage financings at levels above the levels. We saw in 2020 with refinancings declining significantly from the levels. We saw in both 2020 and 2021.

Slide 16 provides our guidance for <unk> 'twenty, one we expect revenue in the range.

Our two three to one 5 billion.

Reflecting revenue growth of about 10% to 11, 8%, including a 1% benefit from FX acquisitions are expected to positively impact revenue by five 4%.

We're expecting adjusted EPS, and <unk> 21 to be $1 72 to $1.

<unk> 82 per share compared to <unk> 20, adjusted EPS of $2 per share.

In <unk> 'twenty, one technology transformation costs are expected to be around $45 million or 27 per share. Excluding these costs, which were excluded from <unk> adjusted EPS of <unk> 21, adjusted EPS would be $1 90.

9% to $2 90 per share.

Slide 17 provides the specifics on our 2021 and full year guidance, we are increasing guidance substantially reflecting our very strong <unk> 'twenty one performance the acquisitions of Amyris health Opex and pellet track are expected to add about $45 million of revenue in the quarter.

2021 revenue.

Of between $4 901, and $4 $90 billion to $1 billion reflects growth of about 18, 7% to 19, 2% versus 2020, including a one 4% benefit from FX.

Acquisitions are expected to positively impact revenue by about three 1%.

AWS as.

And to deliver over 38% revenue growth with continued very strong growth in verification services Usia's revenues expected to be up mid to high single digits driven by growth in non mortgage <unk>.

Combined AWS and <unk> mortgage revenue is expected to be up over 18% in 2021 about two five percentage points stronger.

As expected the overall market decline of just over 7%.

International revenue is expected to deliver constant currency growth of about 10%.

Gcs revenue is expected to be down mid single digits from 2021, Gcs revenue is expected to be up over 5% in the fourth quarter.

As a reminder, in 2021 equifax is including.

Putting all cloud technology transformation costs, and adjusted operating income adjusted EBITDA and adjusted EPS. These onetime costs were excluded from adjusted operating income adjusted EBITDA and adjusted EPS in 2017 through 2020, and 2021, Equifax expects to incur onetime cloud technology transformation costs of approximately.

$165 million a reduction of over 50% from the $358 million incurred in 2020. The inclusion in 2021 of these one time costs would reduce adjusted EPS by.

By about $1 one per share.

2021, adjusted EPS of $7 52 to $7 62 per share which includes these.

Transformation costs is up seven 8% to nine 3% from 2020, excluding the impact of tech transformation cost of $1 one per share adjusted EPS in 2021 would show growth of about 22% 24% versus 2020.

2021 is also negatively impacted by a redundant system costs.

Cost of about $80 million relative to 2020. These redundant system costs are expected to negatively impact adjusted EPS by approximately <unk> 50 per share and negatively impact adjusted EPS growth by about seven percentage points in 'twenty one.

We remain confident in our cloud transformation plan and the savings in 2022 and beyond that we have discussed.

These tech previously with you now.

Now, let's turn to a discussion of an early framework for 2022.

Slide 18 provides the macro assumptions behind our 2022 framework given the continued significant uncertainties in the overall U S and global economy as well as in the U S. Mortgage market. We wanted to provide you with the assumptions we've been using at this stage and develop.

Discussing our framework for 2022.

As I discussed previously we expect the U S mortgage market, our proxy for which is U S mortgage credit inquiries to decline about 15% in 2022 relative to 2021.

<unk> U S b to B mortgage revenue is expected to continue to significantly outperform the overall.

Developed market and show growth in 2022 relative to 2021.

Our overall framework is based on our continued U S. Economic recovery that is 2022 GDP growth of about 4% for the full year, we expect our U S.

And workforce solutions non mortgage businesses to outperform their underlying markets we expect.

Workforce solutions, you see in ERC businesses to decline by almost 30% in 2022.

We also expect that international economies will continue to recover in 2022, our international businesses are also expected to outperform their underlying markets slide.

Slide 19 provides a view of Equifax total and core revenue.

Growth from 2017 through 2022, frankly through the 2022 framework in.

In <unk> 2021.

<unk> core revenue growth is expected to be a strong 17% with core organic revenue growth of about 12%.

Almost two thirds of that core organic growth is driven by non mortgage growth.

Across all four be use.

In 2022 based on the assumptions I just shared Equifax total revenue is expected to be up about 8%, we anticipate delivering strong core revenue growth of 14%, reflecting organic growth of 11% and.

Organic core growth of 11% and a 3% benefit from acquisition.

Physicians completed in 2021, which will more than offset the significant headwinds.

The assumed declines in the U S mortgage market and the UC and <unk> businesses.

Slide 20 provides a revenue walk detailing the drivers of the 8% revenue growth in 2022 from the midpoint of our 2021 revenue.

The midpoint of our 2022 revenue framework 2022 revenue of $5 3 billion.

The 15% decline in the U S mortgage market and the expected declines in the workforce solutions unemployment claims and <unk> businesses are expected to negatively impact revenue in 2022 by five and three four percentage point.

Core organic revenue growth is anticipated to be over 11%.

Non mortgage core organic growth is expected to drive about two thirds of the growth. The largest contributor is workforce solutions with strong organic growth and talent solutions government and employee boarding solutions, including <unk>.

<unk> non mortgage international and Gcs.

<unk> guidance also exposure expected to drive core growth.

Mortgage revenue outperformance relative to the overall mortgage market is expected to drive the remaining about a third of the organic core growth.

This was driven by strong outperformance in workforce solutions.

Acquisitions completed in 2021 are expected to contribute about three.

Percentage points of growth for 2022.

Slide 21 provides an adjusted EPS walk detailing the drivers of the expected 14% growth from the midpoint of the 2021 guidance of $7 57 per share to the midpoint of our 2022 framework of <unk> 65 per share.

Revenue growth of 8%.

<unk> at our 2021 EBITDA margins of about 33, 8%, we'll deliver 11% growth in adjusted EPS.

In 2022, we expect to deliver EBIT EBITDA margin expansion of about 200 basis points. This margin expansion is expected to drive 9% growth in adjusted EPS. This.

This margin expansion is expected to be delivered by the actions we have discussed with you throughout 2021.

Our transformation investments will be reduced by about $100 million in 2022 with about half of this reduction or about $50 million being reinvested in new product and other developments.

We will begin to see net cloud cost.

In 2022 defined as the savings from improving production costs driven by the decommissioning of our legacy on Prem systems and other improvements in our operations exceeding the cost of running our new cloud Native systems margins will also be enhanced by leverage on corporate and G&A.

Partially offsetting these benefits.

Savings EBITDA, our cost increases, particularly in salaries and contracted services as a tight labor market drives cost higher as well as lower EBITDA margins in 2022 from the 2021 acquisitions as we will just be ramping synergies during 2022.

Depreciation and amortization is expected to increase by about 40.

<unk> 2022, which will negatively impact adjusted EPS by about 4%.

DNA is increasing in 2022, as we accelerate putting cloud native systems into production.

The combined increase in interest expense and tax expense in 2022 is expected to negatively impact adjusted EPS by about two percentage points.

5 million increase in interest expense reflects the increase in debt from our 2021 acquisitions.

Our estimated tax rate using this framework of 24, 5% does not assume any changes in the U S. Federal tax rate should that occur we will let you know the estimated impact on our 2022 results.

As there remains significant uncertainty in underlying.

The market drivers, including the pace of normalization of the U S mortgage market and the pace of economic growth worldwide. What we provided today for 2022 was a framework for you to consider we will provide formal guidance for 2022 in connection with our <unk> 21 earnings release early next year.

Now I'd like to turn it back over to Mark.

Thanks, John We hope this early view of our framework for 2022 is helpful and reinforces the power of the new equifax to deliver 14% growth in.

8% total growth at the midpoint of our range of thinking assuming the mortgage market and you see an Esa declines impact our revenue growth by almost 6% in 2022.

You're lying stepping back and reviewing the macro trends outlined on slide 22.

These macros have been driving information services for the last decade over the last 24 months. We believe most of the macro factors are substantially accelerated and through our 2021 acquisitions of accuracy counts Intel attract and our <unk> cloud investments advantage Equifax.

Effects to benefit from these macro trends.

We believe we also have unique levers that equifax to deliver strong future growth, including workforce solutions above market and the opex growth and margins and our expanded focus on new data assets like Atlas insights.

Usia's recovery in non mortgage growth.

I'd and fraud growth.

The new Equifax cloud, which is driving a competitive this NPI topline and cost savings.

And ntis, leveraging equifax cloud and our expanded resources and focus on new products, and then of course M&A to broaden and strengthen equifax.

These attractive market macros, along with the broad equifax growth levers and our strong core outperformed.

Performance in the past few years gives us the confidence in our ability to deliver above market growth in the future.

Wrapping up on slide 23, Equifax delivered another strong and broad based quarter with strong momentum as we move into the fourth quarter in 2022.

We've now delivered seven consecutive quarters of strong above market double digit growth.

<unk>, reflecting the power of the new Equifax business model and our execution against our <unk> 2023 stripe strategic priorities Equifax is on offense.

We remain confident in our outlook for 2021 and raised our full year mid point revenue growth rate by approximately 300 basis points to 2% to 19% growth for the year.

We also raised our midpoint EPS by 22 757 per year.

Workforce solutions had another outstanding quarter powering our results delivering 35% revenue growth and 54% EBITDA margins.

Dws is our largest fastest growing and most valuable business and Rudy and his team remain focused on delivering outsized growth.

<unk> also delivered a strong quarter with 16% non mortgage growth at 9% organic non mortgage growth offsetting the impact of a sharp over 20% decline in the mortgage market.

Sid.

Staying in <unk> remain competitive and are winning in the marketplace.

International grew.

For the fourth consecutive quarter with 10% growth in local currency as economies reopen and business activity resumes outside the United States.

We have high expectations for international as we move into 2022.

We spent the past three years building the Equifax cloud and are now in the early days of leveraging the new and uniquely Equifax cloud.

Abilities as we move into 'twenty, two and beyond we will increasingly realize the topline cost and cash benefits from these do only equifax cloud capabilities.

As I mentioned earlier, our 2021 M&A has added $300 million of run rate revenue to equifax.

Reinvesting our strong cash flow accretive and strategic.

Bolt on M&A is central to our FX 2023 growth strategy.

We're now focused on integrating these acquisitions and executing our synergy and growth plans in order to leverage our new data products and capabilities.

Our early look at 2022 financial framework calls for 8% revenue growth and adjusted EPS.

14%, assuming a 15% decline in the mortgage market.

More importantly, the framework includes strong 14% <unk> growth.

Core FX growth.

2022 will be a pivotal year for equifax as we shift towards leveraging the equifax cloud for innovation new.

Growth of growth.

And lastly, turning to slide 20 for many of you have been closely following equifax for many years and know we have been speaking to you about for some time about our.

Our plan to have our first Investor day, which will be our first investor day since 2000, 2012, and the cyber event, it's been a long time, let.

Let me now turn it over to Dorian who will give.

Product sales on our November 10th meeting focused on the new Equifax and then we'll take some questions.

Thanks Mark.

Jive to announce at our Investor Day will take place on November 10th at 830, a M. Eastern time, it will be held virtually we've opened up online registration as of today and the link to do so on slide 24 is wide.

We are very excited to have the opportunity to update you on the progress we've made in making and executing our <unk> 2022 'twenty three growth strategy.

To accelerate our new product innovations and provide you with overviews of the state of affairs of our business units released by their respective leaders.

Investor Day will be an important day for our company and stakeholders and we look forward to speaking with you then with that operator, let me open it up for questions.

Thank you we will now be conducting a question.

And answer session.

I'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys one.

One moment, please while we poll for your questions.

Our first questions come from the line of David <unk> with Evercore. Please proceed with your questions.

Thank you.

And appreciate that the helpful detail in the initial 2020.

Two framework.

It appears that you're guiding above consensus for fourth quarter 2021 revenue and for 2022 revenue.

But somewhat below consensus on our earnings per share for both the fourth quarter and for next year, John you walked through some of the sources of.

Pressure on margin for <unk>.

<unk> 22, but I'm wondering if you could talk more broadly about headwinds and tailwind. So we can understand the variance is it is it really the $50 million for example of tech transformation savings that you're reinvesting in the business next year.

Yeah happy to so again as a reminder, we're talking.

About increasing EBITDA margins by on the order of 200 basis points. So a substantial increase in 2022 versus 2021 and I think the drivers are what we've been talking about all year as I mentioned in my in my prepared remarks, we are reducing substantially tech transformation costs, but we are taking a significant amount of that on the order of $50 million and.

And reinvesting it in NPI and other initiatives to drive growth and to deliver the higher revenue growth you are talking about and that you referenced in your question.

So we do expect now to start seeing benefits. So net reductions in costs from from <unk> exceeding our cloud costs and that will ramp as we go through 2022.

Two.

And then but we are seeing some increased costs related to related in our Cogs as you would normally expect related to increased costs for people and increased cost for some systems cost.

Reducing 2021 EBITDA margins to a degree that's not actually not unusual generally speaking generally speaking we see.

See increased cost every year that we managed through high growth next year part of what's happening obviously right as we're seeing we're seeing substantial negative impacts on our revenue from the weaker mortgage market as well as the reductions in EC and sorry in the U C. NERC markets. So that negative to drive in revenue is also somewhat negatively impacting.

<unk>, our margin expansion, but overall 200 basis points of margin expansion next year. We think is really an outstanding performance, especially given the fact that we're seeing such large declines in the mortgage market and then also the declines in the U C. NERC revenue that we talked about it on the order of 30%.

Thanks for that just as a quick follow up in your.

Our initial 2022 financial framework, you're guiding to 11, 3% core organic revenue growth within that number.

What is your expectation for AWS.

Organic growth and how do you think about headwind and tailwind for AWS next year.

Yes, so I think.

In terms of the details around how the be used we're going to perform next year, we're going to have to ask you to wait until November 10th, but obviously, we expect dws to continue to perform extremely well you should obviously, we've been quite clear that we expect workforce solutions to grow above the rest of equifax. So I think you should think about it that way.

In 2022, I went through with you we've been through many many.

Any time, the multiple levers that workforce for example has.

Finish up the year and go into 2022 and record starts at the top of that list, adding substantial records in the third quarter does it become a benefit through the next year. There are new product introductions continued penetration.

There's a lot of levers in.

Yes, usia's their new deal pipeline.

As a positive lever going forward, but workforce is key.

Clearly going to be above that.

The rest of Equifax for really as long as we can see in the future from a growth rate standpoint.

Understood. Thank you very much.

Thanks.

Thank you. Our next question comes from the line of Kevin Mcveigh with Credit Suisse. Please proceed with your questions.

Great. Thanks, So much hey, Mark you talked about the vitality index up over 8%.

Any sense of where you think that can go to I mean, obviously, there's been a really significant step up in the new product.

Innovation.

And what that can mean to the organic growth longer term.

Yeah.

It is clearly a priority Kevin as you know since I joined.

Almost four years ago and are really in the last call. It 24 months, we've really stepped up our focus on new products. As you know we've expanded the team John and I, both talked about it in our.

This morning about continuing to invest there and of course, the cloud transformation is central to that that's really.

We're going to get great benefits from the cloud around cost, but we really did it to change our competitiveness and a big piece of that is the ability to bring new products to market that we couldnt do before through multi data solutions and that's.

Really what our focus is and we're in the early days of really leveraging that so we see real opportunities going forward. We will certainly talk in depth at our Investor day in a couple of weeks.

Round.

Our longer term outlook for new products, but.

It's an area that we've invested heavily.

Foundational Lee in the cloud.

You add to that our existing differentiated data assets, which we've expanded substantially this year with the addition of new data solutions from at risk from our account from Mattel attract.

And then our focus on new products, we believe its important lever for delivering a strong future growth going forward.

Forward and we'll give you much more detail during our Investor day.

Thank you so much and then just real quick on the customer migration to it seems like you've made a lot of progress on that.

Where are you in that process and then are you seeing any incremental step up in revenue as these customers have cut over like is there any way to think about what the revenue impact.

<unk> has been.

Just.

<unk> question, but just like what percentage step up you're seeing as the customers have converted.

Yes first on the progress. This is a big undertaking I think you know that we talk to you about it every quarter and we tried to be quite transparent about the efforts.

2018, 19 and parts of 'twenty were.

Building the technology in 2020, one we've been heavily focused on.

Implementing that with our customers. The migrations you should see the great progress, we still got more to do and we were clear that we expect North America.

Which is Canada U S and AWS and <unk>.

And of course, Tcs that'd be substantially complete as we get into 2022 and really complete the migrations next year. So we can see the finish line, but there's still plenty of work to do in the coming months.

To complete that with regards to <unk>.

Impact commercially there's a number of layers.

<unk>. This is another area. Our intent is to go in substantial detail about how we think about that what we're seeing during our investor day.

I'll have our <unk>.

<unk> technology leader and product leader pricing color as well as the business unit leaders will talk about that but you are starting to see some of the early days of that in our view.

Here's the strong core growth the ability to rollout new products are driving our competitiveness and driving our ability to drive our core growth and there is no question when we sit down with customers.

We believe we're advantaged, having a new tech stack.

It's in the cloud they can deliver.

Nines of stability, meaning very high always on stability deliver data more quickly to our customers. We can deliver new products to them more quickly. It just changes who we are as a company and it allows us to be a different company. So it's quite central to how we think about the new equifax going forward in.

Nine natural it to our long term growth framework that we shared with you in a couple of weeks.

Makes sense. Thanks, so much.

Thanks.

Thank you. Our next question is come from the line of Kyle Peterson with Needham <unk> Company. Please proceed with your question.

Hey, good morning, guys.

It won't be seeking the questions.

Sure.

I think that's all I know Mark and I know, there's been a lot of concerns over chip shortages.

By constraints potentially impacting on our credit picking up quickly that it's been a little bit of a headwind but.

As seen.

In the U.

Thanks for particularly than they used to.

Our segment for auto credit.

Similar yes.

We could've been should have commented on that in the US Also there's no question that the supply shortage shortages are impacting the ability for consumers to.

Identify cars or get cars.

When used and then of.

You are financing that comes with that in that business, we get from that what's been offsetting that just some regards it not fully but.

He is our continued penetration of new products and new solutions like workforce solutions continuing to grow the use of twin data.

<unk> spaces.

A positive would you add anything John.

I'd say that covers it.

Of course.

The good news is we're continuing to grow and USAA asset not only organic basis, even in the headwinds of the difficult market, but.

But yet it certainly isn't at the pace that we expected when we started the year.

Got it that's helpful and then I guess just a follow up.

On <unk>.

Obviously, good to see really strong record.

In twin teen share gains.

Moving forward, how can we think about the records growth I know you guys mentioned a few.

Additional payroll processing partnerships in the pipeline, but how should we think about records and kind of the greenfield between some of these alternative data sources like gig.

Gross pension versus traditional W. Two records.

You guys kind of see is.

Prospects.

Yes.

An important focus of Rudy in the workforce solutions team.

<unk> seen.

<unk> success, there and remember we've got two really levers for growth first.

Workers employer services business, which is large and comprehensive as we deliver new solutions HR managers.

<unk> nine or HSA or W. Two or what's.

What's your all the other services, we access payroll records. So that's a very powerful engine for us to go to individual companies to obtain records and.

We feel like we have some real momentum.

Adding the payroll processors that are not with us.

Going after the.

Traditional nonfarm payroll.

<unk> 60 million plus consumers are individuals that are available for us in the traditional non farm and we're chasing.

And of course, so thats, one and of course with records being up 12% in the quarter.

Very strong lever for growth that translates pretty directly into revenue because of higher hit rates.

As you point out there is also a larger universe of nonfarm payroll of $160 million to $70 million that are in non farm payroll that gig workers.

As well as pension recipients those are two big areas, there is $40 million to $50 million gig workers. So we're working different strategies too.

Obtain those records and then the same with pension recipients. So there's a long runway from our roughly 60% of nonfarm payroll. If you include self employed and gig in.

It's much less than the 60% to <unk>.

To grow our records, which is.

Our unique.

Business growth lever for our business to continue to add new data assets, because as you know in our system to system integrations and workforce solutions, we're getting the inquiries we can only fulfill those that we.

We have record zone and.

And as we grow our records they become monetized tomorrow afternoon.

Very powerful in the scale of workforce gives us the ability to have large dedicated teams both on the partnership side and on the direct side through employer services to continue to grow our records.

We will we'll likely talk.

In their Investor day about our international expansion, which as you know we're already in Canada, Australia, and India and those businesses are also growing their records leveraging.

Core Tech stack that we have from workforce solutions in the U S. But also relationships that we have either with multinationals or with payroll processors and of course.

A little bit growing those records locally so big Big focus.

Big opportunity going forward. When you think about records I think about us being in kind of middle innings still as far as the opportunity for workforce solutions and these take time.

The payroll processor, we signed last week we.

We were probably talking to them for three years.

It takes time to get organized around that.

But there is real momentum, particularly in that.

Area of acquisition.

Because so many others have signed up with Equifax and are having.

Positive experience, we're seeing real momentum there and adding other.

Other processors.

Got it that makes sense and it was really helpful color. Thanks, guys.

Thank you our next questions come from the line of George <unk> with Cowen <unk> Company. Please proceed with your questions.

George Great. Good morning, guys and appreciate you're willing.

Willing to go out to 2022 in this environment very helpful as always.

I guess first question for me John if we can if we can kind of circle back to.

To the first question just as it relates around margins for 'twenty two.

I think you had said previously savings from redundancies and obviously the tech transformation.

In Asia, we're going to be about call it $150 million, you're reinvesting $50 million of that now it sounds like so net 100.

Is that roughly by my math gets us to kind of the 36% margin that's.

It's sort of a high end to 200 basis point increase is the reason why margins arent expected to be higher than that.

That that natural margin expansion within the business is being offset by.

Some dilution from from M&A, and just sort of higher.

Higher inflation rate.

Related expenses as it relates to wages is that is that roughly the way to think about it.

So George as I.

With my comments right. So you're absolutely right. So we indicated we were going to we would improve our cost structure by on the order of $100 million by taking down transformation costs and then we also said we would improve our cost structure as we drove a net savings rate as E com and other cost reduction efforts drove has exceeded.

Exceeded cloud and so.

I walked through so look we've indicated we're going to deliver on those savings and we're still committed to delivering substantial savings in both of those areas in 2022 and beyond.

But you are correct also as I mentioned in my comments, we're reinvesting a substantial portion of that $50 million in.

And new development and new development related activities.

Also if you.

Think about what's going on given the fact that we are seeing a 600 basis point headwind like the natural growth that you'd see in our and our underlying business that has been very high variable margins.

That's somewhat lower than you would see in a period in which mortgages not as negative as you are talking about and you are correct, great. We're getting a nice bump from growth and acquisitions.

<unk> next year, but the EBITDA margins on those acquisitions in their first year substantially lower than the contribution margin, we get by growing our internal data assets.

When you kind of line all that stuff up and you include the fact that we are seeing cost increases as we do every year right. That's certainly something we see every year, but there is a tighter labor market. So theres an expectation that.

Some of those cost increases will be greater when you line all those fleets those items up you end up at about a 200 basis point increase is where we're where we're comfortable talking about right. Now also I just want to remind everybody 200 basis points rate on again, a 6% reduction in mortgage and UC ERC is really a substantial improvement we feel very good about delivering that.

And so hopefully the.

Yeah.

The investment community can look at it in that vein.

George I would add to that.

We'll obviously talk about our long term framework for revenue and margins in a couple of weeks and we've been quite clear that.

We see.

A lot of ability.

<unk> to grow the topline.

Our content and our ability to grow our top line long term.

Above market level as well as expand our margins.

Also been very clear that while we have the ability to expand margins over.

Over the long term basis, we're also going to invest in the business.

The ability to invest in new products.

Obviously, the tech transformation, which were completing it has really high leverage and driving the top line. So we will continue to have that balance going forward of expanding margins, while investing in the future of equifax.

Okay, Great I appreciate that because I think that's what's weighing on the stock. This morning, So really really appreciate.

Youre breaking it down like that and then just quickly Mark I.

If I caught it correctly, you talked about as it relates to record growth.

Going after some more of these up.

I think of as more Unbanked individuals' gig workers and the like can you talk about the challenges of how do you go about sourcing data from that constituency as opposed to.

Traditional W. Two.

Worker and the like is it is it going to require sort of a different effort in terms of going after like fin techs to partner with or or how are you thinking about that.

Yes.

First our primary focus is to continue to grow W. Two income kind of payroll records and you see.

We've had strong success in that over the last couple of years and certainly again in the quarter.

We're continuing to add to that there is still a long runway. There when you think about $60 million to $70 million of additional individuals that are not in our data set that are inside of that so thats kind of a primary focus and then as you point out we're expanding into gig.

At the same relationships we have.

<unk>.

Process on their own contractor payroll will be able to pick that up some payroll processors have kind of self employed.

Solutions, where there is an ability to pick up data that way there's other HR.

Software providers that it will.

Some of us through partnerships lead to some of those kind of records and of course, the pensioner income at $20 million to $30 million comes from individual companies to process their own pension income or other companies that do that for company. So we've got a multifaceted approach on that really the point we make.

<unk> identified.

That is our lenses wider now and there is still a long runway of this important lever to grow records workforce solutions.

We don't talk about adding data assets in our other businesses, what's unique about workforces did it.

Only a decade old and it only has 60% of.

Non farm payroll so there's a ton of room to grow and then that gets bigger as we both pointed out as you add gig and pension.

That space.

Great. Thank you guys.

Thank you. Our next question is come from the line of Toni Kaplan with Morgan Stanley. Please.

Get all your questions.

Thanks, so much.

I wanted to start with that Brian.

At the time of the acquisition you talked about strong accretion in 'twenty two from that deal along with the healthy effects and <unk> acquisitions, I guess, how much is embedded in your 20 to EPS.

Proceed with expectations from from the deals and maybe you could help with some of the assumptions behind the significant accretion.

<unk> head of Investor Relations and myself, we're getting a little bit more neutral.

Yeah.

So it's absolutely accretive in 2000, 22022, certainly I'm not going to give a specific number for the.

Accretion for the acquisitions, but kind of similar to the response I just gave them with regarding with regard to margin movements. So we do expect good EBITDA margins from those from those acquisitions and the level of margin that we're generating from that certainly exceeds the cost of the interest expense, which we also detail in our in our in our revenue.

<unk> work, so we're seeing nice accretion and so which would be consistent with strong from what we talked about back in August.

But just in general the level of margins, we look at from an acquired <unk>.

Like amyris or anybody else in the first year out.

Incremental margin, we generate from those companies is isn't anywhere near the level of April.

The level of margins, we generate from incremental organic sales at equifax.

Reason why there is somewhat dilutive to our EBITDA margin in total is because of the fact that the variable margin we achieve on our direct sales.

It's certainly substantially higher than the level of margin, we generate from the acquired company in its first year out.

Incremental.

And then just looking at the revenue trends in the appendix it looks like non mortgage online and sell in U S was good at positive, 15%, but it did decelerate relative to last quarter.

Is that because of the auto softness or are there other.

Verticals that are impacting.

It does it does seem like the banks are talking about the lending environment getting better are.

Are you expecting that.

In the fourth quarter or our next year. It does look like in your levers page your macro leverage page.

Maybe it gets better but you know I'm just.

Just trying to understand sort of how much confidence via driver and what youre seeing in the lending environment.

Yes, I think the biggest driver of the growth rates that you are looking at really is the fact that in 2020, we saw meaningful improvement in the third quarter relative to the second rate. So the growth rate in the second quarter of 2020, as we talked about when we did the release was elevated.

Packaging that partially because of the fact that it was such a weak quarter.

And we saw some improvements in the third quarter last year. So that's part of what's driving the fact that that's a significant driver of what's driving the growth rates to be down but in terms of overall performance I think as mark referenced we feel good about banking and lending we have a nice growth there in the quarter again, as we had nice growth.

Elevator and sniper grossing commercial identity and fraud was strong and importantly financial marketing services was very strong right. So but again as you look into the fourth quarter. Similarly to what I just talked about the fourth quarter of last year was a nice improvement from the third quarter. So we will have some of the grow over effects that we that we talked about in the third quarter, but we continue.

I mean, its youre going to see nice non mortgage growth in the U S. I guess in the fourth quarter.

Thank you.

Thank you our next questions come from the line of Andrew Nicholas with William Blair. Please proceed with your questions.

Thanks, Good morning.

My first question was just going to be on the talent solutions.

To believe business, obviously as it gets to become a bigger and bigger piece of workforce solutions. I think you said, 30% of non mortgage just wondering how you think about the cyclicality of that business, we've talked about the tight labor market, but as youre thinking about 'twenty two in particular and embedding that.

That type of growth or some level of growth for that business. How do you think about.

Yes.

The underlying macro.

75 people.

<unk> 75 million people changing jobs every year that macro doesn't really change much overtime <unk> lots of people change jobs that may go up or down.

And underlying that is that there is some level of data use in each of those job moves so thats a macro that's quite good.

Other thing Thats changing that.

He is going to be.

Permanent change is.

The desire by companies to complete that process more quickly.

Meaning they've made an offer to someone getting them on the floor in the warehouse or the factory or in the retail establishment or in the restaurant.

In hours or days.

We think six weeks and the only way you do that is through instant decisioning. So I think that's the fundamental the fundamental structural change in the business the ability to use.

Data to speed up the process for us what we're really adding the growth in us building out this data hub, which you'll remember is only a year old or whatever.

As we're starting to leverage the 455 jobs, we have and the average American from our twin database remember a $5 billion of historical records and then adding two new data elements like adverse insights like medical Credentialing.

The national student Clearinghouse of education, that's all new turf for Equifax as.

We combine those and youre going to see products coming out you already are and we are rolling out new products quite rapidly for talent solutions, where we have different solutions of more or less historical data and we will move to in the coming year solutions that are more targeted to specific jobs.

A job they're required.

Yeah.

What was your last employer what was your last two employers.

Verifying your licenses verifying where did you go to school some jobs require that some don't so will we.

We'll come up with solutions that will be packaged to speed up that process.

Background, screeners and the hiring managers in order to speed.

Wire.

Ability to hire that individual more quickly. So we see a lot of opportunity for growth and that's a $5 billion Tam our business is quite small when you think about $5 billion worth of data.

That's why we're investing through new products and through innovation and of course through.

The acquisitions that we've made or the new partnerships like the national student clearinghouse.

Great. Thank you that's helpful. And then just two quick modeling questions.

The first was.

I think the legacy system savings that you had outlined in prior investor presentations was 85 million.

Year over year, just wanted to make sure that that's still the number to think about and then also if you wouldn't mind speaking to whether or not the SSA contract was fully ramped.

This quarter. Thank you.

Yes, so in terms of modeling again for 2022, what I'd ask you to focus on is the guidance. We just gave right. So what we tried to do is give you.

The detailed work from this year to next year.

And and obviously, there's a lot of moving parts and what's driving our EBITA margin movement, which was some of the questions. We've had earlier. So I asked would be your focus on the on the walk we gave them the 200 basis points of margin expansion. When you think about 2022 relative to 2021.

Yes.

In our comments.

I noted that we launched the program we've started.

Delivering data to them.

Really levels and we expect that to ramp as we go through the fourth quarter and into 2022 and get to run rate sometime in 2022, and you know a substantial and positive contract for us.

In the startup mode, now, which is positive debit started after a lot of years of building this new solution and getting it integrated with SSA.

Great, Thanks, and sorry for missing that second part I appreciate it.

Yeah.

Thank you. Our next question is come from.

Hamzah Mazar with Jefferies. Please proceed with your questions.

Hey.

Good morning. Thank you my question is just around.

The integration of the M&A you've done you know you kind of talked about 2022 seeing synergies rolled through.

Could you just give.

From the.

Examples maybe work integration as of yet to come Whats behind you and then when do you reengage in the M&A market is it more of a can you do that next year or is sort of we work through this integration is done and then you get back more aggressive on M&A, just any thoughts on that.

Give us yes, I know.

Actively as you know we completed eight acquisitions this year in a couple of them substantial particularly count.

In Africa, we're much further along and integrating <unk>.

So as you might imagine because we completed that deal in the first quarter <unk> was only completed a couple weeks ago. So we're still early days.

Already got integration.

Cloud allows us to integrate more quickly and as you know our focus is to bring their unique data into a single data fabric. So thats underway with all of the acquisitions in order to drive their growth going forward and we're seeing it count early positive days.

Topline synergies.

Very pleased with.

The plan on that acquisition and we're very energized about <unk> and of course, all the other acquisitions that we completed.

The synergies from these acquisitions I think.

We've been very clear when we announced the acquisitions.

They'll come in over multiple years.

Darted year one.

Like in 2021, there are some early synergies they build in your two in this case 2022 for those two acquisitions and then they'll continue and we've talked about.

Youre five synergies and some of the acquisitions being quite substantial in those build over time as you rollout the new solutions and new products.

Fully.

We integrate the business into our cloud capabilities and our single data fabric with regards to your second question, we were clear when we announced <unk>.

A couple of months ago that we were going to pause.

Substantial M&A for a number of quarters number one to focus on integration and number two to.

One the leverage back in line so to answer your question, we would expect to be.

Back doing M&A.

In the latter half of 2022 or somewhere in that timeframe, we havent stopped.

Our corporate Dev team of continuing to be in the market to look for M&A that would be.

A meaningful and accretive and I hope you get a sense that we are quite disciplined about the kind of M&A. We want to do we've been very clear for a number of years about acquisitions, we want to do around differentiated data identity and fraud in broadening and strengthening workforce solutions and the deals. We've done this year have checked all those boxes and you should expect the.

Bring them forward to do the same and also with the financial discipline that.

Over the long term they are accretive to our long term growth rates and into our margins. We want to do deals that strengthen the equifax broaden equifax, but also enhance our financials and drive shareholder value.

That's very helpful.

Deals going on and just a follow up question.

Just on the international business I know you flagged fewer expectation of Australia GDP for 2022.

Any do you expect to see benefits from the tech transformation on the international business as early as next year or or does that come over.

Well then thank you.

Most of it comes later, although Canada is well down the path of their tech transformation. They should get some benefits in 'twenty two and there's some early benefits.

UK and Athene in Australia, as we get into 2022, but the bulk of that is going to really come particularly in Latin America in the latter.

For the year as we get into it into 2023.

Got it thank you so much.

Thank you. Our next question is coming from the line of Andrew <unk> with Jpmorgan. Please proceed with your question.

Thanks, two questions. The first one could you just talk how much mortgage revenues.

<unk> as a percentage of total third quarter Equifax revenues that was my second question.

Is about tech transformation expense I wanted to know if you can indicate what the tech transformation expense drag on 22, EPS is compared to the 101 the dollar one for 'twenty, one which.

<unk> has commenced on slide seven footnote five.

Yes, so in terms of the.

Mortgage as a percent of total.

It's just under 32%.

And Thats, obviously down significantly from where it was last year and it will go down again in the fourth quarter.

As Rob So in terms of tech transformation expense I think what we've indicated is that this year, we expect to incur about $165 million.

And that's how you get to the dollar one and we've indicated that we expect to reduce by about $100 million, it's not a perfect number right, but by about $100 million next year, so that would be on the order on the order.

Of $60 to $65 million next year, but obviously, we'll refine that as we move through the fourth quarter and give you a really formal guidance as we get into early next year.

Okay. Thank you.

Thank you. Our next question comes from the line of George Tong with Goldman Sachs. Please proceed with your.

A question Hi, Thanks, good morning.

Thank you revenues beat guidance by about $50 million.

Your full year guidance.

$30 million at the midpoint I know, Chris is adding about $150 million of annual revenue, but how much of the increase in the guide above the Q1 performance was due to contributions from.

Okay.

On the acquisitions.

Performance <unk> underlying business.

Yes, I think we indicated in our prepared remarks, it's about $45 million in the fourth quarter to fourth quarter or an acquisition yet George.

Okay got it and the remainder from performance outperformance.

Yeah.

Correct.

Okay.

Yeah.

In your slides you mentioned that you have sight on mortgages.

Outperformed the underlying margins in 2022.

How much of that outperformance is directly.

The organic outperformance versus the underlying market.

You're breaking up but I think your question George was in 2022, our mortgage outperformance how much is from M&A versus the core business is that right.

Yes.

Yes.

Yes, it's substantially all organic yes.

Western was non mortgage in USAF, then our statement was intended to.

Right. So we're expecting them to outperform their core market on an organic basis.

And the workforce solutions acquisition.

Are really don't have an impact on their outperformance in mortgage.

Got it thank you.

Thank you our next question is coming.

Org line of Jeffrey Miller with Baird. Please proceed with your questions.

Yes. Thank you on 22 margins are you viewing 'twenty two.

As a year, where it's still pretty depressed by onetime expenses or are you viewing it as a good kind of.

Underlying baseline where theres.

From that what would be some puts and takes I guess, there's still $65 million of PCI on top of that I think even though the net.

Costs are going down there's still probably some fairly material duplicative systems cost that you can work down over time.

Not trying to ask if you're at peak margins, because I know you could increase margins.

As always acquired businesses you have good incrementals on organic but just trying to understand if you're viewing 'twenty two is still a fairly depressed figure or if it's a good underlying for us to consider how we go forward from there.

I'll start on that one and John can jump in.

A couple of weeks at our Investor Day presentation will certainly.

Our long term framework around top line and margin growth and we've been very clear you should expect that to include our ability to grow our margins going forward 'twenty two is clearly.

I don't know if you want to call. It is still a transition every year.

You've got the mortgage market impact, obviously and then.

Give you point out we still have substantial cloud transformation costs in 2022, so we're not at a at a normal run rate in 2022 John.

Right. So we just.

I think we just had an earlier question about how much transformation expense was still investments was still in 2022, and we gave a number of.

165, this year and we said we'd reduce by about 100. So that's still that's still in the P&L next year and then also we arent, we arent delivering cloud savings so are our net cloud costs.

Over over decommissioning is a positive next year.

But we've given our long term model, where we expect to deliver substantial.

When the cloud transformation is complete we're still committed to that right. So the exact timing as you move through any given year, obviously moves around a lot based on decommissioning and the pace of ramp of individuals' system. So it's hard to be specific at any about any specific number as far as 15 months out, but we are absolutely committed to a to delay.

Levering, our net savings next year versus the net net cost. This year and then also there are substantial savings still to come as we get through 2022, and then into 'twenty three and 'twenty four obviously those don't complete until we complete the international transformation.

Very helpful. And then we get asked a lot about the NPL and if.

It's cannibalistic to card, including from a euro transaction or underwriting perspective.

I would expect you to have a pretty unique view into that given Australia is a more developed to the NPL market plus you obviously have a nice bureau share there. So would just love your thoughts on the.

And.

Over time, if you would expect it to be cannibalistic to card or not thanks.

But that's a different question about cannibalistic card.

As far as a card issuer I think some card issuers are probably seeing some pressure from BNP L. Meaning consumers are using that.

Instead of using their credit card to make purchases when it comes to equifax in our industry is providing data.

The NPL, we sell a bunch of identity data to the NPL players around the globe, but increasingly they are starting to use alternative data as a part of their underwriting.

In many cases credit data.

M P on credit file data going forward so.

I think if you look at the total pie on consumers.

Using cash or debit versus the NPL in credit.

The pie is growing meeting consumers are using this as another way too.

Finance their purchases which from.

I mean, <unk> perspective, we view as a good thing that we've got.

Discussions with all of the NPL players about using our data and our identity data because you have to verify the identity of the consumer before you offer them financing even on a pair of jeans.

Going forward, so we view as a as a net positive for the credit bureaus.

In Equifax.

Thank you Bob.

Yeah.

Thank you. Our next question is coming from the line of Manav Patnaik with Barclays. Please proceed with your questions.

Thank you good morning.

John.

The 200 basis point margin expansion was obviously strong given all.

The headwinds and I was hoping you could just help us.

Maybe with some order of magnitude I had three things the tight labor market.

Increase in costs the acquisition impact and then the 600 basis point decline in <unk> revenues or whatever so like how much of a headwind where each of those.

I would start with number one is that we're continuing to invest more next year than this year, we're intending to around new products innovation DNA customer customer growth, we see real leverage in doing that so John talked about that go ahead John absolutely.

I'm not going to size them, specifically right, but we referenced them because theyre all.

Meaningful to us right. So so they are all impacting margins, but again 200 basis points increase in a market where there is <unk>.

600 basis points of headwinds from mortgage and then obviously you see NERC, which is we think is a very good outcome. So we think <unk>.

And as we indicated we will start delivering savings and net e-commerce, sorry, net cloud relative to become another cost savings. So we feel good about the about the.

A direction, we're headed and we feel good about delivering 200 basis points of growth.

Got it Okay, and then maybe just some modeling items just so that we get.

The directional numbers right could you just give us what the.

2021.

And you see revenues were so that we can model that takes in decline and then.

Thinking about what's the D&A interest expense and Capex. Please.

For the third quarter.

We gave it.

Thank you.

So for 2021 like what is the number just so that we can do to the 2022 model. When you gave us some changes.

So I understand the question. So we will we will think about that obviously, we're gonna be together again in a little over two weeks and perhaps we can provide a bridge, but we gave.

Well I think we gave details on a 30% reduction we said the 30% reduction was one 1.25% of revenue. So I think between those two numbers, you'll get pretty close to the exact number but we haven't disclosed it yet but.

I apologize I don't have at my fingertips.

But I think with those two pieces of information you can.

You get really close to the UC NERC revenue in 'twenty, one 'twenty two.

Okay. Thank you.

Thank you. Our next question is coming from the line of Ashish Saavedra with RBC capital. Please proceed with your questions.

Yes.

Taking my question two questions first one is on pricing you, obviously have a very strong pricing power and there was some pretty good pricing increases in endo verification business. How do we think about pricing increases going forward and then just second one.

On the $50 million of investment how do we think about that investment.

I know you talked a lot about it but is this like a one time investment or should we think about having these like $50 million investment every year over the next several years so color on both fronts. Thanks.

Yeah, so on the investment.

We will continue we continue to balances.

Thanks, Kevin since I've been here.

<unk>.

Our margins, while investing in the business and the $50 million that was referenced is.

Areas, where we see opportunities to continue to grow our investments in new products of DNA in order to drive our top line and Thats really around leveraging the cloud now I'll leave the long term discussion.

Discussion until a couple of weeks on November 10th during Investor Day, where we can talk in more detail about that balance, but we've been very clear that we expect.

Our margin, we expect to expand our margins going forward while investing.

In Equifax and there'll be a balance there that we think is the right thing.

For Equifax and for our shareholders over the long term.

John do you want to take the first question.

The first question was a rabbit around verification.

Revenue and you want.

But I think power.

Pricing.

Pricing is one lever that we use.

Cross Equifax workforce, clearly has more pricing power than our other businesses.

We expect to have.

<unk> be a positive for us in 2022, and that's inside our our early framework.

And of course, we've got many many other levers that we focus even more strongly on <unk>.

Products is a big one.

In verification of course, the number of polls penetration those all drive the business and of course records underlie driving of verification.

That's very helpful. Thank you.

Okay.

Thank you.

Our next questions come from the line of Craig Huber with Huber Research partners. Please proceed with your questions.

Thank you maybe if you could touch on.

Personal finance area in the credit card area within your traditional credit Bureau business.

How did that do in the quarter, what's your near term outlook for that please.

Our next I don't think we gave any real specific details on it I'll give you. Some color is that as we expected coming out of Covid, we expected cards and P loans.

To see some positive momentum, which we have.

Particularly around marketing.

As you know the card issuers A&P loan issuers in 2020.

Yes, it really stopped a lot of the marketing because of the uncertainty around where the consumer was going to be and now as you got into 2021 and certainly through the third quarter. We've seen an increased marketing you've seen that in our numbers.

A lot of our marketing.

Performance in <unk> is from cards.

From some from a P loans.

And we expect to see issuers continue to try to acquire more customers and build up their balance sheets, which have come down as consumers have been paying down a lot of balances. So theres, a quite a bit of marketing activity going on and we expect that to continue in the future.

And the bulk of our.

The bulk of that business.

For Us obviously is in banking and lending and Mark talked about the growth we're seeing in banking.

In the third quarter and second quarter, So we've seen double digit growth both quarter.

I appreciate that my follow up question on the global consumer solutions area, maybe just touch on your outlook. There for the next couple of quarters, if you could on the direct versus indirect.

Touched on a little bit right, there, but just go a little further detail on that yes, I think we talked in our comments that we.

The partner business to return to growth in the fourth quarter was clearly impacted.

Bye.

The tightening of of.

Of originations by a lot of their customers and on the direct business and we expect.

The same.

Great. Thank you.

Thank you. Our next question is coming from the line of Gary Bisbee with Bank of America.

Hey, guys. Good morning, I wanted to go back to record growth for for a minute you've had tremendous success.

With a payroll channel it sounds like you've got.

Maybe at this point the three major players I know theres some reasonably chunky players after that but then it fragment my understanding pretty quickly.

Is that enough to continue to deliver double digit records growth and I guess how meaningful.

At the moment are over the next 12 months to 24 months. If some of these other opportunities like the 10 99 workers are pensions and are there. Other are there other sort of types of players beyond payroll that have <unk>.

Data that could further you could do deals with to further support growth of records.

We get why it's been unbelievable I.

I'm, just not certain if payroll being a big piece of that can drive. The next few years like it like it has the last few.

But Gary as we've talked about we get the bulk of our records through our employer services business and Thats a steady increase in records.

And 60% of our records come from that so that's clearly.

Yes.

For each area of focus where we have a dedicated team on the partnership side.

They can be a little bit lumpy when you bring in a larger payroll processor, but theres still a lot of runway.

In that vertical if you want to call it that.

Or do you expand those partnerships and as we said we've got continued momentum.

A very.

Very active dialogues about them wanting to join.

Another area for records is around HR software partnerships, where they.

We have access to records because of the software being embedded in an individual company. Most companies as you know process their own payroll.

Are there some used their own systems, but most used some third party system. So that's another avenue for us in order to access.

Our records and then we talked about our focus on gig and pension to go even further.

As far as our record additions so we see a lot of runway in our ability to continue to.

Records, which as you know is a very yet.

Valuable lever for top and bottom line growth as a workforce solutions.

And then just one more on that on that topic, you mentioned new products, a lot and I know a few times in the past you've talked about substantially higher priced products like 100, 150 to $200 versus 10.

In 'twenty or whatever the typical but can you can you give us just maybe an example of one that is in the market driving revenue what the price point is or what is unique about the new offerings versus the traditional levels of income unemployment I'm just not sure.

There's a bunch of I'll give you a couple.

Grow mortgage and mortgage are typical solution is a report that shows current income and employment and it verifies that that might sell for 20 to $40 somewhere in that range and as you know because we have the $5 billion of historical records in some mortgage applications the complexity.

Laxity or the consumers' income, let's say that they change jobs recently.

So they don't have a lot of job history, or let's say that they get a lot of incentive based income using either a salesperson or some other incentive based income meeting gets lumpy when the income comes in they get it at the end of the year and many of those.

Those solutions you require more history. So we haven't so instead of selling that call. It 20% to $40 solution will sell a solution that has 24 months or 36 months or even 48 months all different products and those price points are in the 100 150 to $200 range meeting substantially.

The higher and again leveraging our historical data another mortgage solution is mortgaged duo, which we rolled out in the last couple of months.

Some mortgage applications.

Two income earners on at a husband and wife using that example, and in the old solution still used the originator would pull.

It has been for $20 to $40 and then on the wife for $20 to $40 using.

That kind of a couple we have a solution now priced between I think a 175 to $200. It provides both reports at the same time. It also allows I think in that solution a second pole somewhere.

On the mortgage application process, so substantially above the price point and again delivering value to the originator because they're looking for speed and looking to complete it quickly that's really the solution there.

Turning to <unk>, we've got an <unk> solution that typically John the <unk> traditional is in that.

And the 1% to $20 range more like 30 to 40 30 to $40 nine sorry, your 10 to $20 to $20 range as I nine and we've got a new solution. We've talked about the last couple of quarters that we rolled out its 99 anywhere that allows the applicant to completed on an equifax app. The <unk> process and then go.

Verify it at a couple thousand different sites across the United States that we do through a partnership and that solution instead of being in call. It at $10 range as in the <unk>.

75 to $100 range, providing real value and the value is to that applicant and the employer to speed up.

<unk> processed.

That individual can get on the job on the floor in the factory in the restaurants. So a couple of different solutions in talent same thing.

We're starting to have solutions instead of just pulling eight whereas mark work now on solution, having more history cause some employers want that some employers want.

So theres market working now or the job that he's leaving they want to verify that others want to verify employment for the last two or three or four jobs as we mentioned earlier, we're going to be product tightening.

A more comprehensive solutions that combine not only work history from our twin database to 5 billion records that we have.

We averaged four five jobs on the average American that work history, we're going to be adding to it incarceration data from at risk medical licensing and Credentialing data from Arris.

University Secondary education College degrees from National student Clearinghouse, and those will all be product ties in a solution.

The added that will deliver more value deliver more speed to get a higher price point than the <unk>.

Individual solutions because of the.

The value that it adds in speeding up that process. So those are all some examples of where we're focused on and these are all driven by <unk>.

The new Equifax cloud. These are things that would have been very challenging to.

Solution with the pace that we're doing it.

In this case, we're talking mostly about workforce solutions, but the same across equifax.

Thank you Dan.

Yeah.

Thank you there are no further questions at this time I would like to turn the call back over to Dorian Hare for any closing remarks.

Thank you for joining today's call and look forward to joining you again for a robust discussion when we have our investor day on November 10.

Again, the registration is currently open and there is a link to the slide 24, where you can register for our Investor Day will also be releasing a press release later today with those details. This does conclude the call.

To do thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time.

Have a great day.

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