Q1 2024 TransUnion Earnings Call

Operator: Hello and welcome to the TransUnion First Quarter 2024 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad, and to withdraw from the question queue, please press star, then 2. As a reminder, this conference is being recorded. I would now like to hand the call to Greg Bardi, Vice President, Investor Relations. Please go ahead.

Hello, and welcome to the Transunion first quarter 'twenty 'twenty four earnings call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask.

Question You May Press Star then one on your telephone keypad to withdraw from the question queue. Please press Star then two.

As a reminder, this conference is being recorded.

I'd now like to hand, the call to Greg Pardy, Vice President Investor Relations. Please go ahead.

Greg Bardi: Good morning, and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Cello, Executive Vice President and Chief Financial Officer. We posted our earnings release and slides to accompany this call on the TransUnion Investor Relations website this morning, and they can be found in the current report on Form 8K that we filed this morning. Our earnings release and the accompanying slides include various schedules that contain more detailed information about revenue, operating expenses, and other items, as well as certain non-GAAP disclosures and financial measures, along with the corresponding reconciliation of these non-GAAP financial measures to their most directly comparable Today's call will be recorded, and a replay will be available on our website.

Greg Bardi: Good morning, and thank you for attending today joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Cello, Executive Vice President and Chief Financial Officer.

Greg Bardi: Posted our earnings release and slides to accompany this call on the Trans Union Investor Relations website. This morning, and they can be found in the current report on form 8-K that we filed this morning are.

Our earnings release and the accompanying slides include various schedules, which contain more detailed information about revenue operating expenses and other items as well as certain non-GAAP disclosures and financial measures along with the corresponding reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measure.

Greg Bardi: Today's call will be recorded and a replay will be available on our website. We will also be making statements. During this call that are forward. Looking these statements are based on current expectations and assumptions and are subject to risks and uncertainties.

Greg Bardi: We will also be making statements during this call that are forward-looking. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements because of factors discussed in today's earnings release, in the comments made during this conference call, in our most recent Form 10-K, Forms 10-Q, and other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statement. With that, let me turn it over to Chris.

Greg Bardi: Actual results could differ materially from those described in the forward looking statements because of factors discussed in today's earnings release and the comments made during this conference call and our most recent Form 10-K forms 10-Q, and other reports and filings with the SEC.

Greg Bardi: And I take any we do not undertake any duty to update any forward looking statement with that let me turn it over to Chris.

Christopher A. Cartwright: Thanks Greg, and let me add my welcome and share our agenda for the call this morning. First, I'll provide the highlights of our first quarter 2024 results, including an update on our progress against our transformation initiative. Second, I will discuss our India growth story. And finally, Todd will detail our first quarter results along with our second quarter and full year 2024 guidelines.

Chris: Thanks, Craig and let me add my welcome and share our agenda for the call. This morning.

Chris: First I'll provide the highlights of our first quarter 2024 results, including an update on our progress against our transformation initiatives second I will discuss our India growth story, and finally, Todd will detail, our first quarter results, along with our second quarter and full year 2020 for guidance.

Christopher A. Cartwright: In the first quarter, TransUnion significantly exceeded guidance across revenue, adjusted EBITDA, and adjusted diluted earnings per share. Given the strength in the quarter, we are raising our full year 2024 guidance, which Todd will describe later, while still maintaining a conservative guidance posture given still tepid market conditions and macroeconomic and geopolitical uncertainties. Revenue in the quarter exceeded $1 billion for the first time in the company's history, growing 8%-plus on an organic, constant currency basis, well above our 3-4% guidance.

Chris: In the first quarter Transunion significantly exceeded guidance across revenue adjusted EBITDA and adjusted diluted earnings per share.

Chris: Given the strength in the quarter.

Chris: We are raising our full year 2024 guidance, which Todd will describe later, while still maintaining a conservative guidance posture, given given still tepid market conditions and macroeconomic and geopolitical uncertainties.

Chris: Revenue in the quarter exceeded 1 billion for the first time in the company's history growing 8% plus on an organic constant currency basis, well above our 3% to 4% guidance.

Christopher A. Cartwright: Mortgages drove much of the outperformance due to better-than-expected third-party score and credit report price realization, as well as slightly better prequalification volume. We expect much of the pricing benefit to persist throughout the year, increasing our expectation for mortgage growth. However, our mortgage volume assumption remains conservative, as in February. In fact, we have trimmed volume expectations for the second half of the year, despite the strong start, to provide further cushion against an uncertain mortgage market backdrop.

Chris: Mortgage drove much of the outperformance due to better than expected third party score and credit report price realization as well as slightly better prequalification volumes.

Chris: We expect much of the pricing benefit to persist throughout the year, increasing our expectation for mortgage growth. However, our mortgage volume assumption remains conservative as in February and in fact, we have trimmed volume expectations for the second half of the year. Despite the strong start to provide further.

Chris: <unk> cushion against an uncertain mortgage market backdrop.

Chris: Our organic constant currency growth, excluding mortgage of 5% also exceeded our expectations led by international as well as key emerging verticals, such as insurance media public sector and collections.

Chris: U S markets grew 7% with financial services up 13% and emerging verticals up 4% consumer.

Christopher A. Cartwright: Our organic, constant currency growth, excluding mortgage of 5%, also exceeded our expectations, led by international as well as key emerging verticals such as insurance, media, public sector, and collections. U.S. markets grew 7%, with financial services up 13%, and emerging verticals up 4%. Consumer Interactive declined 2%, as expected. Consistent with the fourth quarter, muted but stable economic conditions and lending volumes supported financial services growth. Consumer finances in the U.S. remain healthy due to low unemployment and real wage growth.

Chris: Consumer interactive declined 2% as expected.

Chris: Consistent with the fourth quarter muted, but stable economic conditions and lending volumes supported financial services growth.

Chris: Consumer finances in the U S remain healthy due to low unemployment and real wage growth.

Chris: Inflation has moderated but remains above target and.

Chris: And market expectations have reverted to higher for longer interest rate forecast.

Chris: Lending standards remain tight as lenders faced potentially increasing capital requirements as well as rising delinquencies, albeit still within historical averages.

Chris: The bank's echo the sentiments during recent earnings calls reporting subdued loan and deposit growth as they balance consumer resiliency against continued market uncertainty.

Chris: Within U S markets, New Star delivered another good quarter, and we remain on target to grow mid single digits in 2024.

Christopher A. Cartwright: Inflation is moderated but remains above target, and market expectations have reverted to higher for longer interest rate forecasts. Lending standards remain tight as lenders face potentially increasing capital requirements as well as rising delinquencies, albeit still within historical averages.

Chris: Communications marketing and risk all contributed led by robust growth in trusted call solutions.

Chris: Our international segment grew by 15% on a constant currency basis.

Chris: The 12th consecutive quarter of double digit growth.

Chris: India led with 31% growth, while Canada Asia Pacific and Africa again grew double digits.

Chris: Finally, we achieved key milestones in our transformation program reinforcing our confidence in delivering against our financial commitments.

Christopher A. Cartwright: The banks echoed these sentiments during recent earnings calls, reporting subdued loan and deposit growth as they balanced consumer resiliency against continued market uncertainty. Within U.S. markets, Newstart delivered another good quarter, and we remain on target to grow mid-single digits in 2024. Communications, marketing, and risk all contributed, led by robust growth in trusted call solutions. Our international segment grew by 15% on a constant currency basis, the 12th consecutive quarter of double-digit growth.

Speaker Change: Let me address this in more detail.

Chris: As we discussed last quarter, our transformation efforts comprised two complementary programs optimizing our operating model by further leveraging our global capability centers or <unk> and modernizing our technology capabilities.

Chris: We believe these initiatives will accelerate innovation streamlined workflows reduce costs and ultimately position us to deliver better experiences to meet the evolving needs of customers and consumers.

Chris: And our operating model optimization program, we substantially completed our local market workforce reductions and migration notices in the first quarter.

Chris: Concurrently we're on track with our plan GCC hiring.

Chris: We now have roughly 4900 employees in our GCC network and our talent acquisition in India, South Africa, and Costa Rica is stronger than ever.

Christopher A. Cartwright: India led with 31% growth, while Canada, Asia-Pacific, and Africa again grew double digits. Finally, we achieved key milestones in our transformation program, reinforcing our confidence in delivering against our financial commitment. Let me address this in more detail.

Chris: As more work shifts to the Gcc's, we're taking a rigorous approach to change management systematically tracking and documenting knowledge transfer training our leaders to manage increasingly global teams and developing a feedback loop to improve processes continuously.

Chris: We're also deliberately balancing the need for customer centric work in markets with the opportunity to centralize standardize and automate key global functions.

Christopher A. Cartwright: As discussed last quarter, our transformation efforts comprise two complementary programs, optimizing our operating model by further leveraging our Global Capability Centers, or GCCs, and modernizing our technology capabilities. We believe these initiatives will accelerate innovation, streamline workflows, reduce costs, and ultimately position us to deliver better experiences to meet the evolving needs of customers and consumers. In our Operating Model Optimization Program, we substantially completed our local market workforce reductions and migration notices in the first quarter.

Chris: And our technology program, we're modernizing our capabilities by completing our cloud transformation and leveraging new stores technology to consolidate the assets, we've built and acquired in recent years onto one true common state of the art solutions enablement platform.

Chris: One true is becoming the platform for ingesting managing governing analyzing and delivering data and insights.

Chris: One true platform integrates separate data and analytic assets in credit risk marketing and fraud prevention and concentrates them in a single layered in unified environment.

Chris: We believe that one true will enrich our data quality speed time to market and accelerating innovation ultimately driving better growth across our credit fraud and marketing solutions.

Christopher A. Cartwright: Concurrently, we're on track with our planned GCC hiring. We now have roughly 4,900 employees in our GCC network, and our talent acquisition in India, South Africa, and Costa Rica is stronger than ever. As more work shifts to the GCCs, we're taking a rigorous approach to change management.

Chris: From a financial perspective, we expect one true will also save cost and enable us to rationalize applications and standardized global services.

Chris: These efficiencies will allow our engineers to focus more time on innovation finally, the standardized operating model will enable us to adapt more quickly to rapidly changing regulations and ensure compliant data usage.

Chris: Our focus in 2024 and 2025.

Christopher A. Cartwright: Systematically tracking and documenting knowledge transfer, training our leaders to manage increasingly global teams, and developing a feedback loop to improve processes continuously. We're also deliberately balancing the need for customer-centric work in markets with the opportunity to centralize, standardize, and automate key global functions. In our technology program, we're modernizing our capabilities by completing our cloud transformation and leveraging NewSTAR's technology to consolidate the assets we've built and acquired in recent years onto one true, common, state-of-the-art solutions enablement platform.

Chris: Is in consolidating our U S and India products data and analytics onto the platform in accordance with respective laws and regulations, we made meaningful progress in the first quarter we.

Chris: We launched advanced acquisition in the U S, which combines data enrichment with our credit and marketing capabilities for integrated credit based consumer prospect marketing solution.

Chris: We also moved key capabilities of our short term lending credit Bureau factor trust onto one true with full online solutions to follow.

Chris: Representing the first credit Bureau applications on our new platform.

Chris: <unk>, we began the process to move our U S and global internal analytics environments as well as our core U S credit onto one true over the next several quarters.

Christopher A. Cartwright: One True is becoming the platform for adjusting, managing, governing, analyzing, and delivering data and insight. The One True Platform integrates separate data and analytic assets for credit risk, marketing, and fraud prevention and concentrates them in a single, layered, and unified environment. We believe that One True will enrich our data quality, speed time to market, and accelerate innovation, ultimately driving better growth across our credit, fraud, and marketing solutions. From a financial perspective, we expect One True will also save costs and enable us to rationalize applications and standardize global services. These efficiencies will allow our engineers to focus more time on innovation. Finally, the standardized operating model will enable us to adapt more quickly to rapidly changing regulations and ensure compliant data usage.

Chris: These actions reinforce our confidence in delivering an expected $65 million of operating expense savings in 2024.

Chris: And we continue to target $200 million of free cash flow benefit by 2026.

Chris: Now over the last two decades Transunion has built a leadership position in India. One of the most attractive global markets, we've grown our Indian business more than 30% every year since 2017, except for the pandemic here in 2020.

Chris: And this market contributed roughly one five points to total company growth in 2023.

Chris: We have a tremendous long term opportunity to enable growth in the Indian market Andy.

Chris: India is the fifth largest economy in the world and the fastest growing with GDP expected to drop double by 2030.

Chris: Two thirds of India's population is under the age of 35 and this segment alone comprises 890 million people more than three times the size of the U S. Adult population. These.

Chris: These demographics drive economic growth and need a sophisticated consumer credit system to support an expanding aspirational middle class.

Chris: The Indian government remains highly focused on modernizing its economy promoting financial inclusion and digital transformation initiatives.

Chris: India is evolving economy creates high demand for credit marketing and fraud solutions and we have built a unique market leading business. The credit Union. The credit Bureau, Transunion Civil was founded in 2000 and has become a household brand that is synonymous with credit reports.

Christopher A. Cartwright: Our focus in 2024 and 2025 is to consolidate our U.S. and India products, data, and analytics onto the platform in accordance with respective laws and regulations. We made meaningful progress in the first quarter; we launched Advanced Acquisition in the U.S., which combines data enrichment with our credit and marketing capabilities for an integrated credit-based consumer prospect marketing solution. We also moved key capabilities of our short-term lending credit bureau, Factor Trust, onto One True with full online solutions to follow, representing the First Credit Bureau applications on our new platform.

Chris: We have 640 million consumer records in our Bureau, growing roughly 15% each year, we serve more than 6000 institutions, including the largest banks non banking financial institutions, Fintech and insurance companies.

Chris: We also reached a 100 million consumers directly through our consumer solutions.

Chris: As the leading credit Bureau, we play an impactful role in the Indian credit economy.

Chris: We closely engaged with the regulatory and government institutions, such as the reserve Bank of India, and the Ministry of finance to support initiatives focused on managing financial stability and systemic risk as well as driving financial inclusion.

Chris: We also improved financial literacy through our education and awareness programs and our direct connections with more than 100 million consumers and.

Christopher A. Cartwright: Finally, we began the process to move our U.S. and global internal analytics environments, as well as our core U.S. credit, onto One True over the next several quarters. These actions reinforce our confidence in delivering an expected $65 million of operating expense savings in 2024, and we continue to target $200 million of free cash flow benefits by 2026.

Chris: And as I will describe in more detail later, we enabled credit penetration and critical underserved areas, such as small and midsized businesses agriculture and micro finance.

Chris: Our strategy in India exemplifies our enterprise vision to make trust possible between consumers and businesses and global Commerce.

Chris: India's market dynamics by themselves drive attractive growth with GDP growing nearly 8% in credit growing roughly 16% in 2023.

Chris: We expect strong volumes again in 2024, albeit with likely lower growth rates as the lending ecosystem takes a modestly more conservative stance we.

Christopher A. Cartwright: Now, over the last two decades, TransUnion has built a leadership position in India, one of the most attractive global markets. We've grown our Indian business more than 30% every year since 2017, except for the pandemic year in 2020. And this market contributed roughly 1.5 points to total company growth in 2023. We have a tremendous long-term opportunity to enable growth in the Indian market. India is the 5th largest economy in the world and the fastest growing, with GDP expected to double by 2030. Two-thirds of India's population is under the age of 35, and this segment alone comprises 890 million people, more than three times the size of the U.S. adult population.

Chris: We have consistently outperformed the underlying market however, driven by the same growth playbook that we use across our business.

Chris: First as client engagement or deepening client relationships to drive wallet share and share shift we empower our vertical <unk> sales force to focus on thematic selling emphasizing our role as a trusted advisor to our clients.

Chris: This enables us to build upon our already strong share in core consumer credit by expanding our suite of solutions and penetrating new lenders.

Chris: Second is product innovation.

Chris: We continue to successfully bring innovation from other markets to India, such as trended credit data and consumer education tools increasingly we're driving and market innovation like our API marketplace and in areas such as financial inclusion fraud.

Chris: And identity and open banking.

Chris: We're also exploring opportunities to bring new store capabilities, such as trustee call solutions and marketing products to the Indian market.

Christopher A. Cartwright: These demographics drive economic growth and need a sophisticated consumer credit system to support an expanding aspirational middle class. The Indian government remains highly focused on modernizing its economy, promoting financial inclusion, and digital transformation initiatives. India's evolving economy creates high demand for credit, marketing, and fraud solutions, and we have built a unique market-leading business. The Credit Bureau TransUnion Civil was founded in 2000 and has become a household brand that is synonymous with credit reports.

Chris: Third is market adjacencies or India's version of emerging markets.

Chris: Key focus areas, our commercial fintech indirect to consumer commercial credit is unique to NDS, we do not operate a commercial bureau in the U S. We hope Indian lenders assess the creditworthiness of businesses based on credit as well as bank statement tax and trade data.

Chris: From 2018 to 2023, we grew in India at a 27% compound annual growth rate.

Chris: And the chart on slide nine highlight how the growth playbook enabled this market leading performance.

Chris: Consumer credit grew at a 23% CAGR commercial fintech and direct to consumer grew at a faster combined 36% CAGR and now represent roughly 40% of revenue.

Christopher A. Cartwright: We have 640 million consumer records in our Bureau, growing roughly 15% each year. We serve more than 6,000 institutions, including the largest banks, non-banking financial institutions, fintechs, and insurance companies. We also reach 100 million consumers directly through our consumer solution. As the leading credit bureau, we play an impactful role in the Indian credit economy. We closely engage with regulatory and government institutions, such as the Reserve Bank of India and the Ministry of Finance, to support initiatives focused on managing financial stability and systemic risk, as well as driving financial inclusion. We also improve financial literacy through our education and awareness programs and our direct connections with more than 100 million consumers.

Chris: We believe overtime our solutions outside of consumer credit can contribute 50% plus of our Indian revenue.

Chris: We are only scratching the surface of the opportunities outside of consumer credit with the right to win given our scale and brand recognition our breadth and.

Chris: And the quality relationships that we have in the market as well as product innovation.

Chris: Much of our next generation of innovation focuses on enabling credit penetration in underserved sectors, all of which the government of India has identified as key economic growth priorities.

Chris: Our fifth ranked assessment uses credit and alternative data for sharper risk differentiation of small and midsized businesses.

Chris: The solution enables lenders to better serve indias 63 million small and medium businesses, which contribute to 30% of India's GDP.

Chris: The civil credit and farm report consolidated credit satellite and other relevant agricultural data to begin to digitize, the historically manual and cumbersome agricultural lending process.

Christopher A. Cartwright: And, as I will describe in more detail later, we enable credit penetration in critical underserved areas such as small and mid-sized businesses, agriculture, and microfinance. Our strategy in India exemplifies our enterprise vision to make trust possible between consumers and businesses in global commerce. India's market dynamics by themselves drive attractive growth, with GDP growing nearly 8% and credit growing roughly 16% in 2023. We expect strong volumes again in 2024, albeit with likely lower growth rates as the lending ecosystem takes a modestly more conservative stand.

Chris: Farming is the livelihood of 55% of the Indian population and agricultural loans account for at least 18% of the bank's lending portfolios.

Chris: And the civil Micro finance support and score provides comprehensive data and analytics to serve the 70 million micro finance borrowers in India Micro finance refers to collateral free loans for lower income families. The loans average roughly $500 and typically focus on rural and remote areas.

Chris: The reserve Bank of India has specific mandates for lending to this segment of the population.

Chris: Closeout, India has a multi decade growth story for Transunion.

Chris: At our Investor day, we targeted $300 million of revenue from India by 2025, and we are well on pace to exceed that target.

Chris: We continue to believe this business can deliver conservatively, 20% plus growth over the medium term.

Christopher A. Cartwright: We have consistently outperformed the underlying market, however, driven by the same growth playbook that we use across our business. First, client engagement, or deepening client relationships to drive wallet share and share shift. We empower our verticalized sales force to focus on thematic selling, emphasizing our role as a trusted advisor to our clients. This enables us to build upon our already strong share in core consumer credit by expanding our suite of solutions and penetrating new lenders. Second, there is product innovation.

Chris: And our next goal is to build India into a half a billion dollar business over the next several years.

Chris: Now Todd will provide further details on the first quarter financial results and our second quarter and full year 2024 outlook Todd.

Todd M. Cello: Thanks, Chris and let me add my welcome to everyone before I begin I wanted to highlight our updated segment reporting starting this quarter, we are reporting our consumer interactive business within our U S market segment.

Todd M. Cello: <unk>, we have shifted certain revenue between U S financial services U S emerging verticals and our international segment. These actions better align our reporting to how we run the business under our U S markets and international President.

Christopher A. Cartwright: We continue to successfully bring innovation from other markets to India, such as trending credit data and consumer education tools. Increasingly, we're driving in-market innovation like our API marketplace and in areas such as financial inclusion, fraud, and identity in open banking. We're also exploring opportunities to bring new STAR capabilities, such as trusted call solutions and marketing products, to the Indian market. Third, there are market adjacencies, or India's version of emerging markets. Key focus areas are commercial, fintech, and direct-to-consumer.

Chris: We have provided recast 2022, and 2023 quarterly results for the updated reporting.

Chris: In an 8-K filed on Tuesday, and have posted the details to our Investor Relations website.

Chris: Additionally, in the appendix of today's presentation, we have provided incremental vertical revenue mix disclosure for our U S financial services U S emerging verticals and consumer interactive businesses for fiscal year 2023.

Chris: Chris mentioned in the first quarter, we exceeded our guidance on all key financial metrics.

Chris: First quarter consolidated revenue increased 9% on a reported basis and 8% on an organic constant currency basis, there was no impact from acquisitions and a less than 1% benefit from foreign currency of.

Christopher A. Cartwright: Commercial credit is unique to NDA as we do not operate a commercial bureau in the U.S. We help Indian lenders assess the creditworthiness of businesses based on credit, as well as bank statement, tax, and trade data. From 2018 to 2023, we grew in India at a 27% compound annual growth rate. And the chart on slide nine highlights how the growth playbook enabled this market-leading performance. Consumer credit grew at a 23% C

Chris: Our business grew 5% on an organic constant currency basis.

Chris: Excluding mortgage from both the first quarter of 2023 and 2024.

Chris: Adjusted EBITDA increased 11% on a reported and constant currency basis.

Chris: Our adjusted EBIT margin was 35, 1% ahead of our expectations and up 80 basis points compared to the year ago quarter due to flow through on revenue growth.

Chris: First quarter adjusted diluted earnings per share was <unk> 92.

Christopher A. Cartwright: Commercial, fintech, and direct-to-consumer grew at a faster combined 36% CAGR and now represent roughly 40% of revenue. We believe over time, our solutions outside of consumer credit can contribute 50% plus of our Indian revenue. We're only scratching the surface of the opportunities outside of consumer credit. We have the right to win, given our scale and brand recognition, our breadth, and the quality relationships that we have in the market as well as product innovation.

Chris: An increase of 14%.

Chris: The adjusted tax rate for the quarter was 22, 5%.

Chris: Finally in the first quarter, we took $43 million of one time charges related to the next phase of our transformation program.

Chris: One 4 million for operating model optimization, and 19 million for technology transformation.

Chris: We continue to expect to incur roughly $200 million of one time expenses in 2024, driving $65 million of in year operating expense savings.

Chris: As part of our $355 million to $375 million program.

Chris: We expect the remaining $75 million to $95 million of one time expenses to be incurred in 2025.

Christopher A. Cartwright: Much of our next generation of innovation focuses on enabling credit penetration in underserved sectors, all of which the government of India has identified as key economic growth priorities. Our FIT rank assessment uses credit and alternative data for sharper risk differentiation among small and mid-sized businesses. The solution enables lenders to better serve India's 63 million small and medium businesses, which contribute to 30% of India's GDP. The Sibyl Credit and Farm Report consolidates credit, satellite, and other relevant agricultural data to begin to digitize the historically manual and cumbersome agricultural lending process.

Chris: Looking at segment financial performance for the first quarter.

Chris: S markets revenue, which now includes consumer interactive was up 7% compared to the year ago quarter.

Chris: Adjusted EBITDA for U S markets was up 6% and adjusted EBITDA margin was down 20 basis points to 36, 2%.

Chris: Financial services revenue grew 13% with trends broadly consistent with the levels seen in the fourth quarter.

Chris: Excluding mortgage financial services revenue was up 1%.

Chris: Consumer lending revenue returned to growth.

Chris: Up 2% in the quarter.

Chris: Activity remained muted as fintech and others remain cautious given rates and market uncertainty.

Chris: New customer and wallet share wins across Fintech buy now pay later.

Christopher A. Cartwright: Farming is the livelihood of 55% of the Indian population, and agricultural loans account for at least 18% of the bank's lending portfolio. And the Sibyl Microfinance Report and Score provides comprehensive data and analytics to serve the 70 million microfinance borrowers in India. Microfinance refers to collateral-free loans for lower-income families. The loans average roughly $500 and typically focus on rural and remote areas.

Chris: And short term lenders offset some of the softness and contributed to growth.

Chris: Our credit card and banking business was flat.

Chris: While issuance is healthy on a historical basis online and batch activity remains tempered as lenders manage rising delinquencies.

Chris: We are enabling our customers to navigate the current environment and position themselves for future growth with highly relevant products such as our true vision risk solutions true Iqs analytical suite trusted call solutions, and our true validate fraud offerings.

Christopher A. Cartwright: The Reserve Bank of India has specific mandates for lending to this segment of the population. To close out, India is a multi-decade growth story for TransUnion. At our Investor Day, we targeted $300 million of revenue from India by 2025, and we are well on our pace to exceed that target. We continue to believe this business can deliver 20% plus growth over the medium term. And our next goal is to build India into a half a billion dollar business over the next several years. Now, Todd will provide further details on the first quarter financial results and our second quarter and full year 2024 outlook. Todd

Chris: Our auto business grew 2% despite continued headwinds in the auto market driven by new business wins and growth from captive auto lenders.

Chris: Consumers, particularly near Prime and subprime continue to face affordability challenges from higher interest rates.

Chris: And declining but still high used car prices.

Chris: Improved new vehicle inventory has provided some increased credit volume as well as interest from Oems and dealers and non credit solutions as they seek to acquire more customers.

Chris: We are seeing strong momentum selling new star marketing and trusted call solutions into the auto space.

Chris: For mortgage revenue grew 52% against inquiry volume declines of 8%.

Chris: Outperformance related to higher than expected price realization on third party scores and credit products.

Todd M. Cello: Thanks, Chris. And let me add my welcome to everyone.

Chris: Volumes were also slightly higher than our expectations, especially in prequalification.

Todd M. Cello: Before I begin, I wanted to highlight our updated segment reporting. Starting this quarter, we are reporting our consumer interactive business within our U.S. market segment. Additionally, we have shifted certain revenue between U.S. financial services, U.S. emerging verticals, and our international segment. These actions better align our reporting to how we run the business under our U.S. markets and international presidents.

Chris: Relative to Prequalification volumes shopping activity has been healthy and to date, we have not seen much incremental pressure from the extension of the G. S E Prequalification program.

Chris: We are pleased with the strong mortgage growth in the quarter, but given uncertainty around interest rates origination volumes and uptake of these newer prequalification programs. We continue to take a conservative view on our mortgage guidance for the year.

Chris: On a trailing 12 month basis mortgage represented about 8% of total Trans Union revenue.

Todd M. Cello: We have provided recast 2022 and 2023 quarterly results for the updated reporting in an 8K filed on Tuesday and have posted the details to our Investor Relations website. Additionally, in the appendix of today's presentation, we have provided incremental vertical revenue mix disclosure for our U.S. Financial Services, and U.S. Emerging Verticals, and Consumer Interactive Businesses for fiscal year 2023. As Chris mentioned in the first quarter, we exceeded our guidance on all key financial metrics. In the first quarter, consolidated revenue increased 9% on a reported basis and 8% on an organic constant currency basis. There was no impact from acquisitions and a less than 1% benefit from foreign currency.

Chris: Let me now turn to our emerging verticals, which grew 4% in the quarter.

Chris: Insurance media public sector and collections led the way for growth.

Chris: <unk> communications in Tech retail and E Commerce grew modestly while tenant and employment screening declined as expected.

Chris: Our appendix slide provides helpful detail on the relative sizing of each of these verticals.

Chris: In insurance, we delivered improved growth with market trends progressing as expected to start the year.

Chris: Select underwriters are starting to resume marketing activity as rate adequacy improves with broader recovery expected as the year progresses.

Chris: Healthier backdrop supports credit based marketing volume as well as increased demand for our suite of marketing products, such as identity based data hygiene and targeted audience solutions.

Chris: Consumer shopping activity remains strong.

Chris: We continued to deliver significant new business wins across our core products as well as with innovative products like true vision driving history.

Chris: Successful cross selling of new Star and <unk> solutions and penetration of the life and commercial insurance market.

Todd M. Cello: Our business grew 5% on an organic constant currency basis, excluding mortgages from both the first quarter of 2023 and 2024. Adjusted EBITDA increased 11% on a reported and constant currency basis. Our adjusted EBITDA margin was 35.1%, ahead of our expectations and up 80 basis points compared to the year-ago quarter due to flow through on revenue growth. Diluted earnings per share was $0.92, an increase of 14 percent. The adjusted tax rate for the quarter was 22.5 percent.

Chris: Media public sector and collections all grew double digits.

Chris: Media benefited from marketing identity, and audience wins, and a stabilizing market backdrop.

Chris: Public sector and collections were again powered by strong growth in trusted call solutions, along with fraud volumes in the public sector.

Chris: Telco was up slightly in line with the recent trajectory and our growth expectation for the vertical which includes many of our legacy communication solutions like landline caller I'd.

Chris: Tech retail and E. Commerce was also up modestly as it comped against project based revenue.

Chris: In the prior year.

Chris: Tenant and employment screening declined as expected as we work through the Recalibration of our solutions, we expect better performance in the second half of the year as we lap the impact of these actions.

Chris: Turning to consumer interactive revenue decreased 2%.

Todd M. Cello: Finally, in the first quarter, we took $43 million of one-time charges related to the next phase of our transformation program, $24 million for operating model optimization and $19 million for technology transformation. We continue to expect to incur roughly $200 million of one-time expenses in 2024, driving $65 million of in-year operating expense savings. As part of our $355 million to $375 million program, we expect the remaining $75 to $95 million of one-time expenses to be incurred in 2025.

Chris: Our indirect channel grew benefiting from continued breach wins reach.

Chris: <unk> revenues can be uneven, but we are accelerating our pace of wins largely on the strength of scientific offerings.

Chris: Our direct business declined as expected as we work through the impact of our Recalibrated marketing strategies.

Chris: We are making good progress on broadening our value proposition and go to market strategy in this business.

Chris: For my comments about international all revenue growth comparisons will be in constant currency.

Chris: So the total segment revenue grew 15% with four of our six reported markets growing by double digits.

Chris: Adjusted EBITDA margin was.

Chris: <unk> 45, 2% up 230 basis points.

Chris: Now, let's dig into the specifics for each region.

Chris: In India, we grew 31% we delivered growth across consumer credit commercial credit fraud, marketing and direct to consumer supported by strong market trends.

Todd M. Cello: Looking at segment financial performance for the first quarter, U.S. market revenue, which now includes Consumer Interactive, was up 7% compared to the year-ago quarter. Adjusted EBITDA for U.S. markets was up 6%, and the adjusted EBITDA margin was down 20 basis points to 36.2%. Financial services revenue grew 13%, with trends broadly consistent with the level seen in the fourth quarter. Excluding mortgage and financial services, revenue was up 1%.

Chris: In the U K revenue was flat.

Chris: The UK Fintech market remains subdued but has stabilized and we continue to see solid growth in banking and insurance setting.

Chris: Setting us up for some improvement as the year progresses.

Chris: Drew vision trended data affordability oriented solutions and our consumer offerings continue to drive new wins.

Chris: Canadian business delivered another quarter of very strong performance growing 18%.

Chris: Despite a muted macro environment.

Chris: We benefited from share gains in financial services strong growth in telco and insurance momentum in consumer indirect and recent breach wins.

Todd M. Cello: Consumer lending revenue returned to growth, up 2% in the quarter, but activity remains muted as fintechs and others remain cautious given rates and market uncertainty. New customer and wallet share wins across fintech, buy now, pay later, and short-term lenders offset some of the softness and contributed to growth. However, our credit card and banking business was flat.

Chris: Growth in Canada was also a bit better than anticipated due to healthier online volumes.

Chris: Looking ahead, as we lap sizeable new business wins.

Chris: We expect growth in subsequent quarters to return to high single digits, which still represents market leading performance in Canada.

Chris: In Latin America revenue was up 7%.

Chris: Olympia and other Latin American countries, we delivered broad based growth with stabilizing market conditions. After a softer second half 2023, Brazil.

Chris: Brazil was flat after a few quarters of declines and.

Chris: And we expect further improvement as the year progresses.

Todd M. Cello: While issuance is healthy on a historical basis, online and batch activity remains tempered as lenders manage rising delinquencies. We are enabling our customers to navigate the current environment and position themselves for future growth with highly relevant products such as our TruVizion risk solutions, True IQ's Analytical Suite, Trusted Call Solutions, and our True Validate Fraud Offer.

Chris: In Asia Pacific, We grew 17% driven by very strong growth in the Philippines, and another solid quarter in Hong Kong.

Chris: Finally Africa increased 12% led by our retail and insurance verticals.

Chris: Turning to the balance sheet, we ended the quarter with roughly five $3 billion of debt.

Chris: 434 million of cash.

Chris: We finished the quarter with a leverage ratio of three five times.

Chris: You can find our debt profile in the appendix of our presentation.

Todd M. Cello: Our auto business grew 2% despite continued headwinds in the auto market driven by new business wins and growth from captive auto lenders. Consumers, particularly near-prime and sub-prime, continue to face affordability challenges from higher interest rates and declining, but still high, used car prices. Improved new vehicle inventory has provided some increased credit volume as well as interest from OEMs and dealers in non-credit solutions as they seek to acquire more customers. We are seeing strong momentum selling new star marketing and trusted call solutions into the auto sector.

Chris: We did not make debt prepayments in the first quarter, but expect to make some prepayments over the course of 2024.

Chris: With our excess free cash flow.

Chris: Our focus this year remains on executing against the transformation initiatives.

Chris: We expect most of our $355 million to $375 million of onetime transformation expense to be paid out in 2024.

Chris: Based on our expectation for adjusted EBITDA and cash generation, we expect our leverage ratio to be in the low three times range by the end of 2024.

Chris: We continue to work toward our leverage ratio target of under three times.

Chris: Not view three times as an ending point for deleveraging and viewed that prepayment is an attractive incremental use of our cash over the medium term.

Todd M. Cello: For mortgage, revenue grew 52% against inquiry volume declines of 8%. Outperformance related to higher-than-expected price realization on third-party scores and credit products. Volumes were also slightly higher than our expectations, especially in prequalification. Relative to prequalification volume, shopping activity has been healthy, and to date, we have not seen much incremental pressure from the extension of the GSE prequalification program.

Chris: Turning to guidance.

Chris: Even after a strong start to the year our approach remains unchanged.

Chris: We continue to assume muted economic growth throughout 2024 with steady lending volumes and no benefit from interest rate cuts.

Chris: That brings us to our outlook for the second quarter of 2024.

Chris: We expect foreign exchange to have an insignificant impact on revenue and adjusted EBITDA.

Chris: We expect revenue to be between 1.017 and $1.0 billion to $6 billion.

Chris: Or up 5% to 6% on an as reported and organic constant currency basis.

Chris: Our revenue guidance includes approximately three points of tailwind from mortgage meaning that we expect the remainder of our business to grow 2% to 3% on an organic constant currency basis.

Todd M. Cello: We are pleased with the strong mortgage growth in the quarter, but given uncertainty around interest rates, origination volumes, and uptake of these newer prequalification programs, we continue to take a conservative view on our mortgage guidance for the year. On a trailing 12-month basis, mortgages represented about 8% of total TransUnion revenue. Let me now turn to our emerging verticals, which grew 4% in the quarter. Insurance, media, public sector, and collections led the way for growth.

Chris: We expect mortgage revenue growth in the second quarter to be slightly lower than the 52% we experienced in the first quarter.

Chris: We expect adjusted EBITDA to be between 366, and $372 million up 8% to 10%.

Chris: We expect adjusted EBITDA margin of 36.0 to 36, 3% or up 90 to 120 basis points.

Chris: We also expect our adjusted diluted earnings per share to be between 95.

Chris: In 98 up 11% to 14%.

Chris: Turning to the full year, we expect insignificant impact from foreign exchange on revenue.

Todd M. Cello: Telecommunications and Tech, Retail, and E-Commerce grew modestly, while tenant and employment screening declined as expected. Our appendix slide provides helpful detail on the relative sizing of each of these verticals, with broader recovery expected as the year progresses. We continue to deliver significant new business wins across our core products as well as with innovative products like TruVizion Driving History. Media benefited from marketing identity and audience wins and a stabilizing market backdrop. Public sector and collections were again powered by strong growth in trusted call solutions, along with fraud volumes in the public sector.

Chris: And adjusted EBITDA.

Chris: We expect revenue to come in between 4.023, and 4.083 billion or up five to six 5% on an as reported and organic constant currency basis.

Chris: Our increased guidance is driven entirely by mortgage specifically from better than anticipated price realization on third party scores and credit reports.

Chris: 2020 for our mortgage inquiry assumption is unchanged at down 5%.

Chris: However, we now expect our mortgage revenue to increase about 50%.

Chris: Up from 25% prior.

Chris: We now expect inquiries to be slightly better than the first half of the year, but still down 10% and for the second half volumes to be flat.

Todd M. Cello: For my comments about international growth, all revenue growth comparisons will be in constant currency. For the total segment, revenue grew 15%, with four of our six reported markets growing by double digits. The adjusted EBITDA margin was 45.2%, up 230 basis points. In the UK, revenue is flat. The U.K. fintech market remains subdued but has stabilized, and we continue to see solid growth in banking and insurance, signing us up for some improvement as the year progresses. Through vision-trended data, affordability-oriented solutions, and our consumer offerings continue to drive new wins.

Chris: We expect our organic constant currency growth, excluding mortgage to be up about two to three 5%.

Chris: We are pleased with our non mortgage outperformance in the first quarter, but continue to take a deliberately conservative approach to the rest of the year given continued market uncertainty.

Chris: For our business segments, we expect U S markets to grow mid single digit or up low single digits excluding mortgage.

Chris: Now anticipate financial services to be up low double digit or low single digit growth excluding mortgage.

Chris: We continue to expect emerging verticals to be up low single digits, and we expect consumer interactive to decline low single digits.

Chris: We now anticipate that international will grow low double digit in constant currency terms driven by broad based positive trends and led by India.

Todd M. Cello: We benefited from share gains in financial services, strong growth in telco and insurance, momentum in consumer indirect, and recent breach wins. Growth in Canada was also a bit better than anticipated due to healthier online volume. Looking ahead, as we lap up sizable new business winds, we expect growth in subsequent quarters to return to high single digits. In Latin America, revenue is up 7%, and we expect further improvement as the year progresses. Turning to the balance sheet, we ended the quarter with roughly $5.3 billion in debt. Our focus this year remains on executing on the transformation initiatives.

Chris: Yeah.

Chris: Turning back to the total company outlook, we expect adjusted EBITDA to be between $1 433, and one $4 $75 billion up 7% to 10%.

Chris: That would result in adjusted EBITDA margin being 35, six to 36, 1% or up 50 to 100 basis points.

Chris: Anticipate adjusted diluted earnings per share to be $3 69.

Chris: The $3 86.

Chris: Up 10% to 15%.

Chris: We expect our adjusted tax rate to be approximately 22, 5%.

Chris: Depreciation and amortization is expected to be approximately $530 million.

Chris: And we expect the portion excluding step up amortization from our 2012 change in control and subsequent acquisitions to be about $245 million.

Todd M. Cello: We expect most of our $355 to $375 million of one-time transformation expense to be paid out in 2024. Based on our expectations for adjusted EBITDA and cash generation, we expect our leverage ratio to be in the low three times range by the end of 2024. We continue to work toward our leveraged ratio target of under three times.

Chris: Dissipate net interest expense will be about $250 million for the full year up $5 million from prior guidance due to higher sulfur.

Chris: Expect capital expenditures to be about 9% of revenue.

Chris: And as previously noted we continue to expect to incur $200 million in one time charges in.

Chris: In 2024 related to our transformation program.

Chris: I'll now turn the time back to Chris for some final comments.

Christopher A. Cartwright: Thank you Todd.

Todd M. Cello: Earning the Guidance, we expect foreign exchange to have an insignificant impact on revenue and adjusted EBITDA. We expect revenue to be between $1.017 and $1.026 billion, or up 5% to 6% on an as-reported and organic constant currency basis. Our revenue guidance includes approximately three points of tailwind from mortgage, meaning that we expect the remainder of our business to grow 2-3% on an organic constant currency basis. We expect mortgage revenue growth in the second quarter to be slightly lower than the 52% we experienced in the first quarter, due to increased guidance.

Christopher A. Cartwright: And to wrap up the call this morning.

Christopher A. Cartwright: We exceeded first quarter expectations, driven by mortgage up performance international momentum good growth from key emerging verticals like insurance and media.

Christopher A. Cartwright: And stable lending volumes in the U S financial services.

Christopher A. Cartwright: We achieved key milestones against our transformation program reinforcing our confidence in delivering against our financial commitments.

Chris: And we are raising our 2024 guidance behind the strong first quarter results and better mortgage price realization, we remain focused and confident in delivering strong results in the current low growth market environment.

Chris: Let me turn it back to Greg.

Greg: That concludes our prepared remarks for the Q&A, we ask that you each ask only one question. So that we can include more participants operator, we can begin the Q&A.

Operator: Thank you as a reminder to ask a question you May Press Star then one on your telephone keypad.

Todd M. Cello: In 2024, our mortgage inquiry assumption is unchanged at down 5%. For our business segments, we expect U.S. markets to grow mid-single-digit or up low-single-digit, excluding mortgages. We now anticipate financial services to be up low double-digit or low single-digit growth, excluding mortgage. Turning back to the total company outlook, we expect adjusted EBITDA to be between $1.433 and $1.475 billion, up 7 to 10 percent. We anticipate adjusted diluted earnings per share to be $3.69 to $3.86, up 10% to 15%.

Greg: If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.

Greg: We will pause momentarily to assemble our roster.

Greg: Today's first question comes from Andrew Steinman with J P. Morgan. Please go ahead.

Andrew Owen Nicholas: Hi, Chris I was encouraged to hear that new star remains on track of that communications marketing and risk all contributed.

Andrew Owen Nicholas: Was hoping you could just give us some more.

Andrew Owen Nicholas: Details on kind of the correct.

Andrew Owen Nicholas: The current trend and new star in the aspirations there.

Christopher A. Cartwright: Yes, sure and good morning, Andrew Neustar.

Christopher A. Cartwright: <unk> posted a solid first quarter.

Speaker Change: Very consistent with our full year guide and we had positive growth across each of the three principal product lines.

Speaker Change: Directionally communications still is posting the highest growth rates and thats driven by.

Todd M. Cello: We expect capital expenditures to be about 9% of revenue, and as previously noted, we continue to expect to incur $200 million in one-time charges in 2024 related to our transformation program. I'll now turn the time back to Chris for some final comments.

Speaker Change: Our suite of trusted call solutions.

Speaker Change: And new sales of that continued to be very strong so that's encouraging.

Christopher A. Cartwright: We also feel good about the rate of growth in marketing.

Christopher A. Cartwright: This quarter was particularly strong in marketing and we called out the media vertical.

Christopher A. Cartwright: That reflects some of the big sales that we had in the media vertical last year, we had a couple of clients in particular that consolidated their business on our audience platforms, which is encouraging.

Christopher A. Cartwright: and Stable Lending Volumes in the U.S. Financial Services. We achieved key milestones against our transformation program, reinforcing our confidence in delivering against our financial commitment. And we're raising our 2024 guidance behind the strong first quarter results and better mortgage price realization. We remain focused and confident in delivering strong results in the current low growth market environment.

Christopher A. Cartwright: And in the first quarter, we will start to lap those sales from last year in the second quarter right, but it was a standout in the first quarter.

Christopher A. Cartwright: And then we've had some acceleration this year in the risks slash fraud portion of new star, particularly around our collections and communications solutions.

Christopher A. Cartwright: So from a revenue perspective, it was quite solid and we feel solid in the guide for the year.

Speaker Change: I think it's also important to note in terms of new Star progress, we're still really confident on achieving the integration savings, we raised up to $80 million.

Speaker Change: Very good about that and of course, we're striving to outperform that number and we'll keep you updated as the year progresses.

Operator: To withdraw your question, please press star, then two. We will pause momentarily to assemble our roster. Today's first question comes from Andrew Steinerman with J.P. Morgan. Please go ahead.

Speaker Change: <unk>.

Speaker Change: Beyond that there is a ton of technology benefit that we are.

Speaker Change: Taking advantage of currently we've talked about one true as our central data management platform and one for began of course within new star as their next generation platform and we've extended it to meet the broader transgene.

Christopher A. Cartwright: You know, this year, this quarter was particularly strong in marketing, and we called out the media vertical. That reflects some of the big sales that we had in the media vertical last year. We had a couple of clients in particular that consolidated their business on our audience platforms, which is encouraging. And in the first quarter, you know, we will start to lap those sales from last year in the second quarter, right, but it was a standout in the first quarter.

Speaker Change: Transunion enterprise needs, but in addition to one true.

Speaker Change: Over these past couple of years, we've done a ton of work to integrate our marketing and fraud solutions and when you do this type of hardcore engineering integration you move sideways from a product innovation perspective for a period, but once you pulled everything together you get a broader and more integrated solution truly the best of both organizations.

Speaker Change: And we expect that work in marketing and fraud to be behind us as we enter in the second half in the third quarter of this year. So in my view, while we're posting good results in new star in a difficult environment. The best in terms of our product offering has yet to come.

Christopher A. Cartwright: And then we've had some acceleration this year in the risk-slash-fraud portion of NewSTAR, particularly around our collections and communications solutions. You know, beyond that, there's a ton of technology benefits that we are taking advantage of currently. You know, we've talked about OneTrue as our central data management platform, and OneTrue began, of course, within NewSTAR as their next generation platform, and we've extended it to meet the broader TransUnion enterprise needs. But in addition to OneTrue, over these past couple of years, we've done a ton of work. And, you know, when you do this type of hardcore engineering integration, you move sideways from a product and innovation perspective for a period.

Speaker Change: And youre going to see that emerge later this year.

Speaker Change: Chris.

Speaker Change: Thank you. The next question is from Faiza <unk> with Deutsche Bank. Please go ahead.

Faiza: Yes, hi, Thank you good morning, I wanted to ask about mortgage since that's what's driving the guidance raise.

Faiza: I guess, what was better than what you had anticipated in mortgage I know you mentioned the pre call volumes.

Faiza: And shopping behavior, but I guess, what drove what global pricing and.

Faiza: What gives you confidence that sort of this level of outperformance will continue through the course that they are.

Speaker Change: Yes, and thanks for the question of <unk>, that's a very essential question to understanding both the quarter and the full year guide.

Faiza: As we were budgeting and forecasting 24.

Speaker Change: It was complicated because there are a lot of moving parts in the forecast given interest rates and market volume uncertainties, but also the new early assessment program by the Gse's, which were which was likely going to have an impact on mortgage pre qualifications.

Christopher A. Cartwright: But once you've pulled everything together, you get a broader and more integrated solution, truly the best of both organizations. And we expect that work in marketing and fraud to be behind us as we enter the second half and the third quarter of this year. So in my view, while we're posting good results in New Star in a difficult environment, the best in terms of our product offering has yet to come, and you're going to see that emerge later this year.

Faiza: Consistent with our overall conservative guidance posture.

Faiza: We're conservative on all of these dimensions of mortgage guide now what we saw in the first quarter is that <unk>.

Faiza: Our volumes were a little better than expectations, but not hugely better and just absolute mortgage volume is a difficult thing to predict as we all know, but the assumptions we made about the proportion of pre qualifications that we would get and the third party score price we would.

Faiza Alwy: Thank you. The next question is from Faiza Alwy with Deutsche Bank. Please go ahead. Yes, hi, thank you. Good morning. I wanted to ask about mortgages since that's what's, you know, driving the

Faiza: Realize on those pre qualifications as well as the price realization of the credit portion.

Faiza: Those all of those assumptions turned out to be conservative right. So.

Faiza: In addition to that we think and this is really our hypothesis is that.

Faiza Alwy: Thank you. The next question is from Faiza Alwy of Deutsche Bank. Please go ahead.

Faiza: Now that.

Christopher A. Cartwright: consistent with our overall conservative guidance posture, we were conservative on all of these dimensions of mortgage guidance. Now, what we saw in the first quarter is that volumes were a little better than expectations, but not hugely better, and just absolute mortgage volume is a difficult thing to predict, as we all know. But the assumptions we made about the proportion of pre-qualifications that we would get and the third-party score price we would realize on those pre-qualifications, as well as the price realization of the credit portion, all those assumptions turned out to be conservative, right?

Faiza: Mortgage lenders don't have to pull three credit reports and incur that cost of three reports in three scores at qualification.

Faiza: It's enabling some additional consumer shopping.

Faiza: So there may be some benefit coming from that as well because our qualification volumes were again.

Faiza: Beyond the conservative forecast that we put in place. So the combination of all of those things lead to material outperformance in mortgage.

Faiza: Booked what we achieved in the first quarter.

Faiza: And then we maintained our actually made a bit more conservative the volume expectations for the remainder of the year simply because its a fluid market.

Speaker Change: There is a lot of uncertainty and there's been a lot of changes now Todd I think you can probably get into some more of the specifics here I think that would be helpful. Absolutely.

Christopher A. Cartwright: So in addition to that, we think, and this is really our hypothesis, is that now that... [inaudible] We booked what we achieved in the first quarter, and then we maintained, or actually made, a bit more conservative the volume expectations for the remainder of the year, simply because it's a fluid market. There's a lot of uncertainty, and there have been a lot of changes. Now, you know, Todd, I think we can probably get into some more of the specifics here. I think that would be helpful. And Faiza, thanks for the...

Todd M. Cello: Thanks for the question and one point that I wanted to start with just to make certain that's clear to everyone that transunion includes the prequalification volumes that Chris was just speaking about in our overall volumes. So when you see our volume number is including the pre qual.

Todd M. Cello: What that means in principle talking about shopping activity being better you have to keep that in mind.

Todd M. Cello: In essence, one of the drivers that we saw.

Todd M. Cello: Sure.

Todd M. Cello: The expectations on volumes.

Todd M. Cello: A little bit better from what we had guided.

Todd M. Cello: So from there.

Todd M. Cello: Looking at our guidance back in February compared to what we put out this morning star.

Todd M. Cello: Starting with revenue Youll notice that.

Todd M. Cello: We've increased the revenue by <unk>.

Todd M. Cello: 25%, so now we're expecting mortgage to grow 50% instead of 25%.

Todd M. Cello: But back to the volumes, we are expecting volumes for the full year to remain the same at down 5%.

Todd M. Cello: In the first half we are expecting the volumes to be a little bit better back in February we had assumed a 15% decline and now we are assuming a 10% decline. So in essence you get.

Todd M. Cello: 5% pick up in the first half.

Todd M. Cello: Prequalification a part of that so keep that in mind, but then in the second half if you go back to February.

Todd M. Cello: Anticipating that we would grow 10% and our volumes and that was just purely comparable.

Todd M. Cello: Absolutely. So, Faiza, thanks for the question. And one point that I want to start with just to make certain that's clear to everyone is that TransUnion includes the prequalification volumes that Chris was just speaking about in our overall volumes. So, when you see our volume number, that's including prequalification volumes. So, what that means when Chris is talking about shopping activity being better, you have to keep that in mind that that's, in essence, one of the drivers that we saw to keep the expectations on volumes a little bit better from what we had expected.

Todd M. Cello: You remember the second half of 2023 was particularly weak.

Todd M. Cello: What we've done is we've changed our second half assumption.

Todd M. Cello: In essence to be flat, so what that means is <unk>.

Todd M. Cello: Second half now has a decline.

Todd M. Cello: Ken.

Todd M. Cello: 10%.

Todd M. Cello: So.

Todd M. Cello: Reason that that's important.

Todd M. Cello: We are fully acknowledging.

Todd M. Cello: The headwinds that we're experiencing in the market from a volume perspective, with the 10 year treasury yield creeping up.

Todd M. Cello: And 30 year mortgage rates.

Todd M. Cello: Rates higher we are acknowledging that.

Todd M. Cello: In our forecast so the.

Todd M. Cello: The takeaway here is that this is better price realization.

Todd M. Cello: On third party scores as well as reports.

Speaker Change: Great. Thank you so much.

Speaker Change: Thank you. The next question comes from Jeff Mueller with Baird. Please go ahead.

Todd M. Cello: Good morning, Jeff, and thank you for the question. So, you know, to start off in response to that, I think it's important for everyone to remember that our initial guide back in February did not anticipate a benefit from lower interest rates. So we went into the year, you know, in essence, just very conservative. We didn't want to get ahead of ourselves, and that proves to be a very good thing as far as where interest rates appear to be headed.

Jeffrey P. Meuler: Yes. Thank you good morning, So Q2 guidance looks good you just addressed.

Jeffrey P. Meuler: Mortgage, but maybe if you can more holistically.

Jeffrey P. Meuler: Kind of just.

Jeffrey P. Meuler: Address this concern that when rates moved higher kind of last summer early fall had created some incremental headwinds in various parts of your business. So just with rates moving higher recently, including again today can you just talk about some other parts of the business, where you saw headwinds last fall and maybe any sort of.

Jeffrey P. Meuler: Like changes in customer behavior or tone that you're hearing more recently on the back of a rate increase.

Todd M. Cello: Trends in our core U.S. financial services business, I would say that they remain stable. You know, you've heard, you know, from some of the bank earnings calls; they used the word subdued. I think that we have appropriately captured these trends in our outlook. There's no significant, you know, upside contemplated there.

Speaker Change: Hey, good morning, Jeff and thank you for the for the questions. So to start off on in response to that I think what's important for everyone to remember that our initial guide back in February did not.

Speaker Change: Dissipate a benefit from lower interest rates. So we went into the year.

Speaker Change: In essence.

Speaker Change: Just very conservative we didn't want to get ahead of it.

Jeffrey P. Meuler: A ourselves in.

Christopher A. Cartwright: It's more of a continuation, you know, of the trends that we're seeing. Now, some important reminders. You know, TransUnion obviously has a very diversified portfolio, and as a reminder, in 2022 and 2023, we grew 3% in both years. Now, clearly, that's not what we planned for, and that's not at all what we aspire to, but it shows the balance of the business, and that's intentional. So, and with that, also... We currently believe that interest rates perhaps may have peaked, or maybe they won't go up much further.

Jeffrey P. Meuler: Proves to be a very good thing that as players where interest rates appear to be headed.

Jeffrey P. Meuler: Trends in our core U S financial services business, I would say that they remain stable.

Jeffrey P. Meuler: You've heard from some of the bank earnings call. They used the word subdued I think that we are appropriately captured these trends in our outlook. There is no significant.

Jeffrey P. Meuler: Upside contemplated there it's more of a continuation.

Jeffrey P. Meuler: The trends that we're seeing.

Jeffrey P. Meuler: Some important reminders Transunion, obviously has a very diversified portfolio.

Jeffrey P. Meuler: As a reminder, in 2022 and 2023.

Jeffrey P. Meuler: We grew 3% in both years now clearly that's not what we planned for and Thats not at all what we aspired for when it shows the balance of the.

Jeffrey P. Meuler: The business and that's intentional.

Jeffrey P. Meuler: So and with that also.

Jeffrey P. Meuler:

Jeffrey P. Meuler: We currently believe that interest rates, perhaps may have peaked or maybe they won't go much further so what does that mean well would've done is it drive certainty that didn't exist for our customers in the previous two years and interest rates were increasing in 2022 and the <unk>.

Christopher A. Cartwright: So what does that mean? Well, what it does is it drives certainty that didn't exist for our customers in the previous two years when interest rates were increasing in 2022 and 2023. Our customers didn't know how much higher they were going to go.

Jeffrey P. Meuler: 'twenty three.

Jeffrey P. Meuler: Our customers didn't know how much higher than they were going to go on so there is definitely.

Christopher A. Cartwright: So there's definitely, you know, some certainty there. Also, it's important to call out that our international business just continues to have strong momentum. In our February guidance, we called for high single-digit growth from that business. We've increased that, even though we're maintaining in total. At the company level, we've increased to low double digits for international, just based on this strong momentum that we're seeing in international. If we flip back to the U.S. markets, the emerging verticals, it's important to call out there that many of those businesses are less dependent on interest rate movements.

Jeffrey P. Meuler: Some certainty there.

Jeffrey P. Meuler: Also.

Jeffrey P. Meuler: It's important to call out that our international business continues to have strong momentum in.

Jeffrey P. Meuler: In the February in our February guidance, we called for high single digit growth from that business, we've increased that even though we're maintaining in total at the company level, we've increased to low double digits for international just based on this.

Jeffrey P. Meuler: Strong momentum that we're seeing in international.

Jeffrey P. Meuler: The flip back to the U S markets.

Jeffrey P. Meuler: The emerging verticals.

Jeffrey P. Meuler: <unk> call out there that many of those businesses are less dependent on interest rate movement and this gets back to what I said at the beginning about the power of the diversified portfolio.

Christopher A. Cartwright: And this gets back to what I said at the beginning about the power of the diversified portfolio that we have. And I would say we're seeing improving trends there. Nothing dramatic, but things are starting, you know, to get better. And then the last point I would make on this one is, you know, cutting across all of these businesses, TransUnion has a robust portfolio of solutions to help our customers no matter what the macro environment presents them. Yeah, and look, if I can...

Jeffrey P. Meuler: That we have and I would say, we're seeing improving trends there nothing dramatic but things are starting.

Jeffrey P. Meuler: To get better.

Jeffrey P. Meuler: And then the last point I would make on this one is cutting across all of these businesses.

Jeffrey P. Meuler: Union has a robust portfolio of solutions to.

Jeffrey P. Meuler: To help our customers.

Jeffrey P. Meuler: No matter, what the macro environment.

Jeffrey P. Meuler: Presents them.

Christopher A. Cartwright: Yeah, and look, if I can reinforce a couple of points, the volumes that we experienced in the first quarter, particularly in U.S. financial services, are consistent with the fourth quarter of last year. The challenge is, as you know, Jeff, in September of last year, the combination of increased rates and a real stress on bank deposits led to a material step down in origination volumes, right? Well, that appears to be flattening, and therefore, our growth is going to improve because we're not absorbing any material declines as we did in the second half of 23.

Speaker Change: Yes look if I can reinforce a couple of points the volumes that we experienced in the first quarter, particularly in U S. Financial services are consistent with the fourth quarter of last year.

Speaker Change: The challenges as you know Jeff in September of the third quarter of last year. The combination of increased rates and a real stress on bank deposits led to a material step down in origination volumes right will that appears to be flattening and therefore, our growth is going to improve.

Speaker Change: Because we're not absorbing any material declines as we did in the second half of 'twenty three.

Christopher A. Cartwright: Thank you. Thank you. The next question is from Manav Patnaik with Barclays. Please go ahead. Thank you. Thank you for the discussion.

Speaker Change: Thank you.

Speaker Change: Thank you. The next question is from Manav Patnaik with Barclays. Please go ahead.

Manav Shiv Patnaik: Thank you.

Manav Shiv Patnaik: Thank you for the disclosure on the emerging markets the emerging verticals I guess in your appendix I was just wondering if just to follow up on that and some of those four big categories. In there. If you could just help us with how much they grew in 'twenty three and how we should think about what you've factored.

Manav Shiv Patnaik: Thank you.

Christopher A. Cartwright: Yeah, look, let me provide some quick color and, uh... You know, I don't, Todd may recall the specific growth rates per emerging segment in 23, but I'm more 24 focused. And look, overall, we're expecting higher growth from the emerging verticals in 24 than we experienced in 23. Starting with insurance, you know, I think I said on an earlier call that we expected insurance to grow faster in 24 but not to return to the high single-digit growth that we've enjoyed consistently.

Manav Shiv Patnaik: <unk> factored in for 24.

Speaker Change: Yeah, well look let me provide some quick color and.

Manav Shiv Patnaik: Todd May recall, the specific growth rates per emerging segment in 2003.

Manav Shiv Patnaik: But I'm more 24 focus and look overall, we're expecting higher growth from the emerging verticals in 'twenty four than we experienced in 2003, starting with insurance.

Manav Shiv Patnaik: I think I said on an earlier call that we expected insurance too.

Manav Shiv Patnaik: To grow <unk>.

Manav Shiv Patnaik: Faster in 'twenty, four but not to return to the high single digit growth that we've enjoyed consistently so that the healing process in terms of insurers returning to formal marketing levels.

Christopher A. Cartwright: So it's a healing process in terms of insurers returning to, you know, former marketing levels. We've seen some improvement in marketing, of course. We've also had some really nice wins, particularly in driver risk. So insurance is solid.

Manav Shiv Patnaik: We've seen some improvement in marketing of course, we've also had some really nice wins, particularly in the driver risk. So insurance is solid.

Christopher A. Cartwright: As we mentioned, we had solid growth in media, and that's because of the realization of some customer wins that we achieved last year. In the public sector, you know; our fraud products are helping us grow there. And finally, Manav, we're getting some nice growth in the collections area, right? As delinquencies rise, part of the compensation for our business model is increased collections. And, of course, Trusted Call Solutions is a growth driver across all of these segments. You know, in technology, in real estate, in e-commerce, we're lapping some major project revenue. We're getting growth there, but it's more like the low-mid single-digit type of growth. And communications is always a mix.

Manav Shiv Patnaik: As we mentioned we had a solid growth in media and Thats because of the realization of some customer wins that we achieved last year public sector. Our fraud products are helping us grow there and finally, manav, where we're getting some nice growth in the collections area right as delinquencies rise part of the compensation for all <unk>.

Manav Shiv Patnaik: This model has increased collections and of course trusted call solutions as a growth driver across all of these segments.

Manav Shiv Patnaik: In technology, and real estate and E. Commerce, we are lapping some major project revenue.

Christopher A. Cartwright: We're getting growth there, but it's more like the low mid single digit type of growth.

Manav Shiv Patnaik: And communications is always a blend it's a combination of some heritage products that are either flat to declining slightly.

Christopher A. Cartwright: It's a combination of some heritage products that are either flat to declining slightly but enhanced considerably by the trusted call solution. And then we are still working our way through some difficult comps on tenant and employment screening. As you know, because of the consent order that we signed with the CFPB last year, we've had to take certain products and certain data that did not meet the enhanced requirements that the CFPB has imposed on the industry. We had to take those products and data out of the market.

Manav Shiv Patnaik: But enhanced considerably by the trustee call solution suite.

Manav Shiv Patnaik: And then we are still working our way through some difficult comps on tenant and employment screening as you know because of the consent order that we signed with the CFPB last year.

Manav Shiv Patnaik: We've had to take certain products certain data that did not meet the enhanced requirements that the CFPB has imposed on the industry. When you take those out of the market, we will lap that by the second half of the year, but for right now its negative and a drag on emerging so hopefully that helps manav.

Christopher A. Cartwright: We'll lap that comp by the second half of the year, but for right now, it's negative and a drag on emerging. So hopefully that helps, Manav. Thank you. The next question comes from Kelsey Zhu with Autonomous. Please go ahead.

Manav Shiv Patnaik: Thank you. The next question comes from Kelsey Zhou with autonomous. Please go ahead.

Kelsey Zhu: Hi, good morning, Thanks for taking my question.

Kelsey Zhu: Thank you. The next question comes from Kelsey Zhu with Autonomous. Please go ahead. Hi, good morning.

Kelsey Zhu: Just wondering if we can also talk a little bit about the growth. We should expect for Somsak are again in 2024.

Christopher A. Cartwright: Yes, so... Let's see, Sontag, and then Argus. Well, the quick news on Argus, I think, is that Argus has been completely integrated into the credit card and banking vertical within U.S. markets. And we've spent a lot of time on their Next Generation platform, but also a lot of data hygiene and enhancement. So we've built a nice pipeline, we're getting some new sales and some conversions, and I continue to be very pleased that we've added this deeper, more authoritative view on how consumers are actually using their cards to our overall, you know, foundation of credit information. Sontag is growing very well. The key driver in Sontag has been breach

Kelsey Zhu: And how the margin profile look like right now and kind of where you are targeting.

Speaker Change: Alright, thank you.

Speaker Change: Yes.

Speaker Change: No.

Speaker Change: Let's see Sonic and <unk> and then Argus will be quick news on Argus I think is Argus.

Speaker Change: It has been completely integrated into the credit.

Speaker Change: Credit card and banking vertical within U S markets and we've spent a lot of time on.

Speaker Change: On their next generation platform, but also a lot of data hygiene and enhancement.

Speaker Change: So we built a nice pipeline, we're getting some new sales and some conversions and I continue to be very pleased that we've added this deeper more authoritative view on how consumers are actually using their card to our overall.

Speaker Change: The foundation of credit information.

Speaker Change: Olympic is growing very well.

Speaker Change: The key driver in scientific has been breached.

Christopher A. Cartwright: As you know, in the fourth quarter, we reported really strong growth in consumer, but it was almost entirely fueled by some breach revenues. So, now that we've kind of matured our ability to sell this, I expect that we're going to continue to get good growth, but again, that is a more lumpy, episodic type of product line, right? And so, as we forecasted Sontag for the year, you know, we forecasted very solid growth from Sontag but not an extrapolation from what we experienced in the fourth quarter and a bit in the first quarter of this year.

Speaker Change: As you know in the fourth quarter.

Christopher A. Cartwright: That really strong growth in consumer, but it was almost entirely fueled by.

Speaker Change: Bye.

Speaker Change: Breach revenues.

Speaker Change: So now that we've kind of matured our ability to sell this I expect that we're going to continue to get good growth.

Speaker Change: But again that is a more lumpy episodic type.

Christopher A. Cartwright: Our product line right and so as we forecasted for the year.

Christopher A. Cartwright: <unk> forecasted very solid growth from sandvik, but not an extrapolation from what we experienced in the fourth quarter and a bit in the first quarter of this year.

Speaker Change: Thank you. The next question is from Toni Kaplan with Morgan Stanley. Please go ahead.

Toni Michele Kaplan: Thank you. The next question is from Toni Kaplan with Morgan Stanley. Please go ahead. Thanks very much. I was hoping to ask about...

Toni Michele Kaplan: Thanks, very much I was hoping to ask about technology you talked about the.

Toni Michele Kaplan: Tech transformation, but just any update on on AI and cloud where you are today any metrics, we should be sort of looking at with regard to that and expense efficiencies anything really that thanks.

Toni Michele Kaplan: Thank you. The next question is from Toni Kaplan with Morgan Stanley. Please go ahead. Thanks very much.

Christopher A. Cartwright: Yeah, so let me survey the landscape, you know, on technology, because multiple efforts that really check the boxes that you've talked about have converged into our next generation foundational data management platform, which is OneTruth. Think of that as All of the different data assets that we have, whether they be credit or marketing or fraud mitigation or public records, are converging on a common set of functionality within one group. Now, part of that is, you know, data ingestion, identity resolution, basic analytics, and certainly feeding all of that into the different product suites that we have, be it credit, marketing, public records, fraud, et cetera, right? And I think we've provided some schematics so you can better understand that.

Speaker Change: Yes, So let me survey the landscape.

Speaker Change: On technology, because multiple efforts.

Christopher A. Cartwright: That really check the boxes that you've talked about have converged into our next generation foundational date.

Speaker Change: Data management platform, which is one true.

Speaker Change: And think of that as.

Speaker Change: All of the different data assets that we have whether they be credit or marketing or fraud litigation or public records are converging on a common set of functionality within <unk> through now part of that is.

Christopher A. Cartwright: Data ingestion identity resolution basic analytics, and certainly feeding all of that into the different.

Speaker Change: Product suites that we have be a credit marketing public records fraud et cetera, right and I think we've provided some schematics. So you can better understand that but underpinning one true we're using machine learning variance of artificial intelligence to speed the ingestion of data.

Speaker Change: The quality assurance the governance certainly the identity resolution.

Christopher A. Cartwright: But underpinning One True, we're using machine learning, variants of artificial intelligence, to speed the ingestion of data, the quality assurance, the governance, and certainly the identity resolution. We're even launching... a machine learning as a service service in our enhanced analytics suite. So, you know, One True, now think of it as a comprehensive umbrella effort that's going to give us the type of one-to-many leverage from our technology that we've been steering toward. And, of course, it's an entirely cloud-architected, cloud-native platform.

Christopher A. Cartwright: Or even launching.

Speaker Change: A machine learning as a service service in our enhanced analytics suite.

Christopher A. Cartwright: So one true now think of it as a comprehensive umbrella effort, that's going to give us the type of one to many leverage from our technology that we've been steering toward and of course, it's an entirely cloud architected cloud native platform all of the data is stored within a fabric and the cloud.

Christopher A. Cartwright: Or a common central repository, if you will.

Speaker Change: And it's also designed to be cloud agnostic because not all of our applications will go to the cloud the majority of them will because the economics and the performance requirements makes sense, but there are certain loads that we can handle more cost effectively.

Christopher A. Cartwright: Our internal private clouds right. So as we've explained there is a division there and we've talked about that previously so hopefully that gives you some more flavor.

Christopher A. Cartwright: All the data is stored within a fabric in the cloud, or a common central repository, if you will. And it's also designed to be cloud agnostic, because not all of our applications will go to the cloud. But the majority of them will because the economics and the performance requirements make sense.

Speaker Change: Okay, great. Thanks.

Speaker Change: Thank you. The next question comes from Heather <unk> with Bank of America. Please go ahead.

Heather: Hi, Thanks for taking my question I wanted to ask you about insurance and I know, it's come up already on the call with regards to marketing, but I'm curious about kind of the other aspects of the business in terms of.

Heather Nicole Balsky: But there are certain loads that we can handle more cost effectively in our internal private clouds, right? So, as we've explained, there's a division there. And we've talked about that before, so hopefully that gives you some more flavor. Thank you. The next question comes from Heather Balsky with Bank of America. Please go ahead. Hi, thanks for taking my question. I wanted to ask you about insurance, and I know it's come up.

Heather Nicole Balsky: What you've been seeing in terms of insurers, leaving state.

Heather Nicole Balsky: The what's going on with shopping it seems like the data.

Heather Nicole Balsky: You guys put out it was pretty good for the quarter just the broader environment.

Heather: For insurance and how you think about that for the rest of the year.

Heather Nicole Balsky: Yeah, Hi, there, it's probably worth refreshing kind of the basic dynamics that we're seeing in the insurance space and look as we all know the past couple of years have been very tough.

Heather Nicole Balsky: For insurers.

Heather Nicole Balsky: Theres been an.

Heather: An increase in frequency and severity of events and the replacement costs have skyrocketed and it's led to.

Heather Nicole Balsky: Thank you. The next question comes from Heather Balsky with Bank of America. Please go ahead. Bye.

Heather Nicole Balsky: P&C carriers pulling back from higher risk regions, whether that's from wildfires or flooding or just a variety of natural disasters.

Christopher A. Cartwright: Yeah, Heather, it's probably worth refreshing the kind of basic dynamics that we're seeing in the insurance space. And look, as we all know, the past couple of years have been very tough for insurers. There's been, you know, an increase in frequency and severity of events, and replacement costs have skyrocketed, and that's led to, you know, PNC carriers pulling back from higher, and that's meant reduced underwriting volumes. And what is underwritten is that at materially higher prices, often that have to be absorbed by consumers, and also a reduction in marketing until the insurers can get a number of rate increases through different states in order to turn profitable on this kind of individual policy economics.

Christopher A. Cartwright: And that's meant reduced underwriting volumes.

Christopher A. Cartwright: And what is underwritten is at a materially higher prices often that has to be absorbed by consumers.

Christopher A. Cartwright: And also a reduction of marketing and tell the insurers could get a number of rate increases through different states in order to turn profitable on kind of individual policy economics.

Christopher A. Cartwright: There's been a lot of progress in getting insurance priced right for this more challenging environment.

Christopher A. Cartwright: And so we are seeing an increase in marketing, but still.

Christopher A. Cartwright: The space is not fully healed, if you will and I think thats going to take more time, probably another year, but we do expect 24 to be stronger on balance in insurance.

Christopher A. Cartwright: Then 23 was you also mentioned shopping activity and Youre right and this is probably something that we all have some personal experience with upon renewal consumers get sticker shock.

Christopher A. Cartwright: There's been a lot of progress in getting insurance priced right for this more challenging environment, and so we are seeing an increase in marketing, but still, you know, the space is not fully healed, if you will. And I think that's going to take more time, probably another year. But we do expect 24 to be, you know, stronger on balance in insurance. You also mentioned shopping, and you're right, and this is probably something that we all have some personal experience with.

Christopher A. Cartwright: And against the price increases have been material for all the reasons that I talked about and that does lead to some more shopping and shopping helps our business model. The other thing that's helping is bit of an improved market environment and the continued growth of our driver risk solutions as insurers are looking for ways to combat.

Christopher A. Cartwright: The increasing prices of state motor vehicle reports.

Speaker Change: That's really helpful. Thank you.

Speaker Change: Thank you today's last question comes from <unk> <unk>.

Christopher A. Cartwright: Upon renewal, consumers get sticker shock, and I guess the price increases have been material for all the reasons that I talked about. And that does lead to some more shopping, and shopping helps our business model. The other thing that's helping is a bit of an improved marketing environment and the continued growth of our driver's risk solutions as insurers are looking for ways to combat the increasing prices of state motor vehicles.

Christopher A. Cartwright: <unk> with Deutsche Bank. Please go ahead.

Speaker Change: Thanks for taking my question I, just thanks for providing those details around the India market that is very encouraging I just wanted to go.

Christopher A. Cartwright: Drilling down on the international in General very strong momentum in the first Walker. The guidance also implies strong growth Margaret I was just wondering if you can talk about puts and takes in any kind of conservatism that's baked into the guidance. Thanks.

Speaker Change: Yeah, well I would say our international.

Christopher A. Cartwright: Forecast in total does reflect.

Christopher A. Cartwright: Similar prudent approach that we've tried to take across the enterprise. Obviously, we're really pleased with the first quarter.

Ashish Sabadra: That's really helpful. Thank you. Thank you. Today's last question comes from Ashish Sabadra with Deutsche Bank. Please go ahead.

Ashish Sabadra: But we were careful not to extrapolate from those results.

Ashish Sabadra: Across the full year.

Ashish Sabadra: That's really helpful. Thank you. Thank you. Today's last question comes from Ashish Sabadra with Deutsche Bank. Please go ahead.

Ashish Sabadra: Canada.

Ashish Sabadra: In addition to India is a real callout for many many years now that team has executed well.

Ashish Sabadra: <unk> has won a lot of customers as further penetrated the entirety of the customer base with a range of solutions and has been posting outside growth.

Christopher A. Cartwright: Yeah, well, I would say our international pro.., forecast in total does reflect a similar prudent approach that we've tried to take across the enterprise. Obviously, we were really pleased with the first quarter, but we were, you know, careful not to extrapolate from those results across the full year. You know, Canada, in addition to India, is a real call out. You know, for many, many years now, that team has executed well, won a lot of customers, further penetrated the entirety of the customer base with a range of solutions, and has been posting outside growth.

Ashish Sabadra: Great in South Africa, and across Africa, broadly and again, India is a huge stand out in a privilege for transunion to be able to.

Christopher A. Cartwright: Participating in Asia Pacific has also had a great rebound, we're seeing exciting things in the Philippines, we're very bullish about the potential for developing our franchise. There in Latam is doing well and we hope and expect to produce better results.

Christopher A. Cartwright: In Brazil.

Christopher A. Cartwright: In the U K U K has been a tough slog that economy has been through a lot of inflation and interest rates have been very high and we were probably overweighted there more toward short term money lenders in fintech, which you've had a particularly hard time. These past couple of years now that thats kind of flattening out the <unk>.

Christopher A. Cartwright: We're doing great in South Africa and across Africa broadly, and again, India is a huge standout and a privilege for TransUnion to be able to participate in. Asia Pacific has also had a great rebound. We're seeing exciting things in the Philippines, and we're very bullish about the potential for developing our franchise there.

Christopher A. Cartwright: Bust growth, we've been enjoying in kind of core mainstream banking is going to start to shine through as well as some of the diversifications into the gaming and gambling market in the U K, which is quite well developed.

Speaker Change: So hopefully I didn't leave anybody out as I went around the horn here apologies no offense intended if I have.

Christopher A. Cartwright: <unk> International.

Christopher A. Cartwright: Is rolling well in.

Christopher A. Cartwright: And we expect to continue to post really good results this year.

Christopher A. Cartwright: And LATAM is doing well, and we hope and expect to produce better results in Brazil. And look, in the UK. The UK has been a tough slog. That economy has been through a lot, inflation and interest rates have been very high, and we were probably over-weighted there more toward short-term money lenders and fintech, which have had a particularly hard time these past couple of years, now that that's kind of flatten

Christopher A. Cartwright: Great.

Speaker Change: That brings us to the end of today's call. Thank you for your time today and have a great rest of that.

Christopher A. Cartwright: Thanks.

Christopher A. Cartwright: Yes.

Speaker Change: The conference has now concluded. Thank you for your participation you may now disconnect your lines.

Christopher A. Cartwright: [music].

Christopher A. Cartwright: Thanks.

Christopher A. Cartwright: Yes.

Christopher A. Cartwright: Okay.

Christopher A. Cartwright: [music].

Christopher A. Cartwright: The robust growth we've been enjoying in kind of core mainstream banking is going to start to shine through, as well as some of the diversifications into the gaming and gambling market in the UK, which is, you know, quite well developed.

Christopher A. Cartwright: Yes.

Christopher A. Cartwright: Sure.

Christopher A. Cartwright: Yes.

Christopher A. Cartwright: Yes.

Christopher A. Cartwright: Yeah.

Christopher A. Cartwright: [music].

Christopher A. Cartwright: So hopefully, I didn't, you know, leave anybody out as I went around the horn here. Apologies. No offense intended if I...

Christopher A. Cartwright: But look, international business is rolling well, and we expect to continue to post really good results.

Operator: Great. That brings us to the end of today's call. Thank you for your time today, and have a great rest of the day.

Christopher A. Cartwright: Right.

Christopher A. Cartwright: [music].

Operator: The conference has now concluded. Thank you for your participation. You may now disconnect your line.

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