Q4 2024 Equifax Inc Earnings Call

February 6, 2025

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Operator: To request operator assistance, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Trevor Burns, Senior Vice President, Head of Corporate Investor Relations. Trevor, you may now begin.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Trevor Burns Senior Vice President head of corporate Investor Relations.

Trevor Burns: It is now my pleasure to introduce Trevor Burns Senior Vice President head of corporate Investor Relations.

Speaker Change: You may now begin.

Trevor Burns: Thanks, and good morning, welcome to today's conference call I'm Trevor Burns with me today are multi Gordon Chief Executive Officer, and John Gamble, Chief Financial Officer.

Speaker Change: Thanks, and good morning, welcome to today's conference call I'm Trevor Burns with me today are multi Gordon Chief Executive Officer, and John Gamble, Chief Financial Officer.

Trevor Burns: Thanks and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the IR Calendar section of the News and Events tab at our Investor Relations website. During the call, we will be making reference to certain materials. It can also be found in the Presentation section of the News and Events tab at our IR website. These materials are also labeled Q4 2024 Earnings Conference Call. Also, we'll be making certain forward-looking statements including first quarter and full year 2025 guidance to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations.

Trevor Burns: Thanks and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the IR Calendar section of the News and Events tab at our Investor Relations website. During the call, we will be making reference to certain materials. It can also be found in the Presentation section of the News and Events tab at our IR website. These materials are also labeled Q4 2024 Earnings Conference Call. Also, we'll be making certain forward-looking statements including Q1 and full year 2025 guidance to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations.

Trevor Burns: Today's call is being recorded an archive recording will be available later today in the IR calendar section of the news and events tab.

Speaker Change: Today's call is being recorded an archive recording will be available later today in the IR calendar section of the news and events tab.

Trevor Burns: Our Investor Relations website.

Speaker Change: Our Investor Relations website.

Trevor Burns: During the call, we will be making reference to certain materials that can also be found in the presentation section of the news and events tab at our IR website. These materials are also labor <unk> 24 earnings conference call.

Speaker Change: During the call we will make some reference certain materials. It can also be found in the presentation section of the news and events tab at our IR website. These materials are also labeled <unk> 24 earnings conference call.

Trevor Burns: Also room, making certain forward looking statements, including first quarter and full year 2025 guidance to help you understand equifax and its business environment.

Speaker Change: Also room, making certain forward looking statements, including the first quarter and full year 2025 guidance to help you understand how colfax and its business environment. These statements involve a number of risks uncertainties and other factors that could cause actual results to differ materially from our expectations.

Trevor Burns: These statements involve a number of risks uncertainties and other factors that could cause actual results to differ materially from our expectations.

Trevor Burns: Factors that may impact our business.

Speaker Change: Factors that may impact our business are set.

Trevor Burns: Certain risk factors that may impact our business are set forth in filings with the SEC, including our 2023 Form 10-K and subsequent filings. We will also be referring to certain non-GAAP financial measures including Adjusted EPS, Adjusted EBITDA, and cash conversion, which will be adjusted for certain items that affect the comparability of our underlying operational performance. These non-GAAP financial measures are detailed in reconciliation tables, which are included with our earnings release and can be found in the Financial Results section of the Financial Info tab at our IR website. As a note, based on feedback from many of you, starting with our first quarter call in April, we will plan on shortening our prepared remarks. Some of the content that we normally share in the prepared remarks may be included in the appendix to our quarterly earnings presentations.

Certain risk factors that may impact our business are set forth in filings with the SEC, including our 2023 Form 10-K and subsequent filings. We will also be referring to certain non-GAAP financial measures including Adjusted EPS, Adjusted EBITDA, and cash conversion, which will be adjusted for certain items that affect the comparability of our underlying operational performance. These non-GAAP financial measures are detailed in reconciliation tables, which are included with our earnings release and can be found in the Financial Results section of the Financial Info tab at our IR website. As a note, based on feedback from many of you, starting with our first quarter call in April, we will plan on shortening our prepared remarks. Some of the content that we normally share in the prepared remarks may be included in the appendix to our quarterly earnings presentations.

Trevor Burns: Fourth in filings with the SEC, including our 2023 Form 10-K and subsequent filings.

Speaker Change: Fourth in filings with the SEC, including our 2023 Form 10-K and subsequent filings.

Trevor Burns: We will also be referring to certain non-GAAP financial measures included including adjusted EPS.

Speaker Change: We will also be referring to certain non-GAAP financial measures included including adjusted EPS.

Trevor Burns: Adjusted EBITDA and cash conversion.

Speaker Change: Adjusted EBITDA and cash conversion.

Trevor Burns: It should be adjusted for certain items that affect the comparability of our underlying operational performance is.

Speaker Change: Which will be adjusted for certain items that affect the comparability of our underlying operational performance.

Trevor Burns: These non-GAAP financial measures are detailed in reconciliation tables, which are included with our running disease and can be found in the financial results section of the financial info tab at our IR website.

Speaker Change: These non-GAAP financial measures are detailed in reconciliation tables, which are included with our running disease and can be found in the financial results section of the financial info tab at our IR website.

Trevor Burns: As a note based on feedback from many of you starting with our first quarter call in April we will plan on shortening our prepared remarks, some of the content. They wouldn't normally share in your prepared remarks, maybe included in the appendix to our quarterly earnings presentations, if you have any questions or comments.

Speaker Change: As a note based on feedback from many of you starting with our first quarter call in April we will plan on shortening our prepared remarks, some of the content. They wouldn't normally share in your prepared remarks, maybe included in the appendix to our quarterly earnings presentations, if you have any questions or comments.

Mark: Please feel free to share them with me and normally now I would like to turn it over to Mark.

Mark: Please feel free to share them with me anomaly now I'd like to turn it over to Mark.

Trevor Burns: If you have any questions or comments, please feel free to share them with me and Molly. Now I'd like to turn it over.

If you have any questions or comments, please feel free to share them with me and Molly. Now I'd like to turn it over to Mark.

Speaker Change: Before I cover our results for the quarter I wanted to spend a few minutes on our 2020 for performance.

Mark: Before I cover our results for the quarter I want to spend a few minutes on our 2020 for performance.

John Gamble: To Mark, before I cover our results.

Mark Begor: Before I cover our results for the quarter, I want to spend a few minutes on our 2024 performance, turning to slide 4. We were pleased with our financial performance in 2024 that was in line with the goals we set at the beginning of the year against some challenging mortgage and hiring macros. 2024 revenue was up almost 8% on a reported organic constant currency basis at the low end of our long term 8% to 12% growth framework. Adjusted EPS was $7.29 per share, up over 8.5% versus last year. Cash conversion was 89%, approaching our target of 95% plus with free cash flow of $813 million up 58%. We reduced our debt leverage to our target levels of under three turns.

Mark Begor: For the quarter, I want to spend a few minutes on our 2024 performance, turning to slide 4. We were pleased with our financial performance in 2024 that was in line with the goals we set at the beginning of the year against some challenging mortgage and hiring macros. 2024 revenue was up almost 8% on a reported organic constant currency basis at the low end of our long term 8% to 12% growth framework. Adjusted EPS was $7.29 per share, up over 8.5% versus last year. Cash conversion was 89%, approaching our target of 95% plus with free cash flow of $813 million up 58%. We reduced our debt leverage to our target levels of under three turns.

Speaker Change: Turning to slide four we were pleased with our financial performance in 2024 that was in line with the goals. We set at the beginning of the year against some challenging mortgage and hiring macros.

Speaker Change: 24 revenue was up almost 8% on a reported and organic constant currency basis at the low end of our long term 812% growth framework.

Speaker Change: 24 revenue was up almost 8% on a reported and organic constant currency basis at the low end of our long term eight for 12% growth framework.

Speaker Change: Adjusted EPS was $7 29 per share up over eight 5% versus last year.

Speaker Change: Cash conversion was 89% approaching our target of 95% plus with free cash flow of $813 million up 58% and we.

Speaker Change: Reduced our debt leverage to our target levels of under three turns.

Speaker Change: We delivered accelerated improvement in constant dollar revenue growth at almost 10% and EBITDA margins at over 34% in the second half of the year, although not at the levels. We had planned given market headwinds principally in U S hiring in the mortgage market.

Mark Begor: We delivered accelerated improvement in constant dollar revenue growth at almost 10% and EBITDA margins at over 34% in the second half of the year, although not at the levels we had planned given market headwinds principally in US hiring and the mortgage market. Overall 2024 performance was strong, aligned with our EFX 2027 strategic priorities, and was an important inflection point in our ability to accelerate our free cash flow generation. And that sets us up well to drive growth through targeted bolt-on acquisitions while positioning Equifax to return capital to shareholders through both dividend growth and launching a multi-year share repurchase program. In 2025 we delivered against our EFX 2027 strategic priorities.

We delivered accelerated improvement in constant dollar revenue growth at almost 10% and EBITDA margins at over 34% in the second half of the year, although not at the levels we had planned given market headwinds principally in US hiring and the mortgage market. Overall 2024 performance was strong, aligned with our EFX 2027 strategic priorities, and was an important inflection point in our ability to accelerate our free cash flow generation. And that sets us up well to drive growth through targeted bolt-on acquisitions while positioning Equifax to return capital to shareholders through both dividend growth and launching a multi-year share repurchase program. In 2025 we delivered against our EFX 2027 strategic priorities.

Overall 2024 performance was strong.

Speaker Change: Lined with our <unk> 2027 strategic priorities and was an important inflection point in our ability to accelerate our free cash flow generation that sets us up well to drive growth through targeted bolt on acquisitions, while positioning equifax to return capital to shareholders through both dividend growth and launching a multi year share purchase share repurchase.

Speaker Change: Program in 2025.

Speaker Change: We delivered against our <unk> 2027 strategic priorities, we made strong progress towards completing our cloud data and technology transformation as <unk>, Canada, Spain, Chile, and several other Latin American countries completed their cloud their consumer cloud customer migrations, a huge milestone for equifax.

We delivered against our <unk> 2027 strategic priorities, we made strong progress towards completing our cloud data and technology transformation as U S. I S, Canada, Spain, Chile, and several other Latin American countries completed their cloud their consumer cloud customer migrations, a huge milestone for equifax.

Mark Begor: We made strong progress towards completing our cloud data and technology transformation as USIS Canada, Spain, Chile, and several other Latin American countries completed their consumer cloud customer migrations, a huge milestone for Equifax. We now have close to 85% of Equifax revenue in the new Equifax Cloud, which is a big accomplishment after five years of investment. We expect to have a significant competitive advantage as we pivot from building to leveraging the Equifax Cloud in 2025 and beyond. That will allow us to fully focus on growth, innovation, new products, and AI. Our cloud progress allowed us to decommission legacy systems and data centers and deliver about $300 million in spending reductions last year. That increased to about $360 million in 2025. Leveraging the new Equifax Cloud, we are now on offense with EFX AI.

We made strong progress towards completing our cloud data and technology transformation as USIS Canada, Spain, Chile, and several other Latin American countries completed their consumer cloud customer migrations, a huge milestone for Equifax. We now have close to 85% of Equifax revenue in the new Equifax Cloud, which is a big accomplishment after five years of investment. We expect to have a significant competitive advantage as we pivot from building to leveraging the Equifax Cloud in 2025 and beyond. That will allow us to fully focus on growth, innovation, new products, and AI. Our cloud progress allowed us to decommission legacy systems and data centers and deliver about $300 million in spending reductions last year. That increased to about $360 million in 2025. Leveraging the new Equifax Cloud, we are now on offense with EFX AI.

Speaker Change: We now have close to 85% of Equifax revenue and the new Equifax cloud, which is a big accomplishment after five years of investment.

Speaker Change: We expect to have a significant competitive advantage as we pivot from building to leveraging the equifax cloud in 2025 and beyond that will allow us to fully focus on growth innovation, new products and AI.

Speaker Change: Our cloud progress allowed us to decommission legacy systems in Datacenters and deliver about $300 million and spending reductions last year that increased to about $360 million in 2025.

Speaker Change: Leveraging the new Equifax cloud, we are now on offense with the FX Dot AI in 2024, 95% of our new models and scores were built using equifax AI and machine learning up from 70% in 2023 and.

Mark Begor: In 2024, 95% of our new models and scores were built using Equifax AI and machine learning, up from 70% in 2023. In 2024 the EWS team had another outstanding year of record additions, ending the year with 188 million active records of 20 million records or 12% with 734 million total records in the twin data set. The team signed 15 new strategic partnerships in 2024 including Workday, which we expect will fuel EWS Verification Services revenue growth in 2025 and beyond. We continued our strong new product growth with broad-based 2024 Vitality Index of 12% which was 200 basis points above our long-term 10% goal and equates to about 650 million of new product revenue last year.

In 2024, 95% of our new models and scores were built using Equifax AI and machine learning, up from 70% in 2023. In 2024 the EWS team had another outstanding year of record additions, ending the year with 188 million active records of 20 million records or 12% with 734 million total records in the twin data set. The team signed 15 new strategic partnerships in 2024 including Workday, which we expect will fuel EWS Verification Services revenue growth in 2025 and beyond. We continued our strong new product growth with broad-based 2024 Vitality Index of 12% which was 200 basis points above our long-term 10% goal and equates to about 650 million of new product revenue last year.

Speaker Change: In 2020 for the AWS team had another outstanding year of record additions ending the year with 188 million active records up 20 million records or 12% with 734 million total records in the twin dataset.

Speaker Change: The team signed 15, new strategic partnerships in 2024, including Workday, which we expect will fuel AWS verification services revenue growth in 2025 and beyond.

Speaker Change: And we continued our strong new product growth with broad based 2020 for vitality index of 12%, which was 200 basis points above our long term, 10% goal and equates to about $650 million of new product revenue last year.

Speaker Change: And we continued our strong new product growth with broad based 2024 vitality index of 12%, which was 200 basis points above our long term, 10% goal and equates to about $650 million of new product revenue last year.

Speaker Change: Our vitality index at AWS and international we're very strong and importantly, we saw <unk> vitality index strengthened 200 basis points from the first half to the second half of last year.

Speaker Change: Our vitality index at AWS and international were very strong and importantly, we saw <unk> vitality index strengthened 200 basis points from the first half to the second half of last year.

Mark Begor: Our Vitality Index in EWS and International were very strong, and importantly, we saw USIS Vitality Index strengthen 200 basis points from H1 to H2 of last year. We expect our Vitality Index to be above our long-term goal of 10% again in 2025 as we leverage the Equifax Cloud to deliver new products that only Equifax can provide. As we move into 2025, I'm energized by our commercial momentum, new product innovation and AI capabilities, and the benefits of the new Equifax Cloud. Turning to slide 5, Equifax Q4 reported revenue of $1.419 billion was up 7%. The dollar strengthened substantially in the quarter, negatively impacting revenue about $12 million versus our October guidance. On an organic constant currency basis.

Our Vitality Index in EWS and International were very strong, and importantly, we saw USIS Vitality Index strengthen 200 basis points from H1 to H2 of last year. We expect our Vitality Index to be above our long-term goal of 10% again in 2025 as we leverage the Equifax Cloud to deliver new products that only Equifax can provide. As we move into 2025, I'm energized by our commercial momentum, new product innovation and AI capabilities, and the benefits of the new Equifax Cloud. Turning to slide 5, Equifax Q4 reported revenue of $1.419 billion was up 7%. The dollar strengthened substantially in the quarter, negatively impacting revenue about $12 million versus our October guidance. On an organic constant currency basis.

Speaker Change: We expect our vitality index to be above our long term goal of 10% again in 25, 25% as we leverage the equifax cloud to deliver new products that only equifax can provide.

Speaker Change: We expect our vitality index to be above our long term goal of 10% again in 2025, as we leverage the equifax cloud to deliver new products that only equifax can provide.

Speaker Change: As we move into 2025, I'm energized by our commercial momentum new product innovation, and AI capabilities and the benefits of the new Equifax cloud.

As we move into 2025, I'm energized by our commercial momentum new product innovation, and AI capabilities and the benefits of the new Equifax cloud.

Speaker Change: Turning to slide five Equifax fourth quarter reported revenue of $1 $41 9 billion was up 7%.

Speaker Change: Turning to slide five Equifax fourth quarter reported revenue of one for $1 9 billion was up 7% the.

Speaker Change: The dollar strengthened substantially in the quarter negatively impacting revenue about $12 million versus our October guidance.

Speaker Change: On an organic constant currency basis revenue growth of 9% was just over 100 basis points or $17 million below the midpoint of our October framework, driven principally by weaker U S hiring and mortgage markets, which declined significantly in the last half of the fourth quarter.

Mark Begor: Revenue growth of 9% was just over 100 basis points or $17 million below the midpoint of our October framework, driven principally by weaker US hiring and mortgage markets which declined significantly in the last half of Q4. The weaker US hiring markets impacted our talent and onboarding businesses, driving the bulk of the weakness versus our guidance midpoint. This resulted in non mortgage constant dollar revenue growth being just under 6% in the quarter and about 150 basis points weaker than our expectations. Total US mortgage revenue was up 29% in the quarter and also below our expectations. US mortgage revenue declined meaningfully in late December and January as mortgage rates have moved above 7%. Based on these trends, we expect 2025 mortgage revenue credit inquiries to be down 12% in 2025. Despite the pressure from weaker mortgage and hiring macros.

Revenue growth of 9% was just over 100 basis points or $17 million below the midpoint of our October framework, driven principally by weaker US hiring and mortgage markets which declined significantly in the last half of Q4. The weaker US hiring markets impacted our talent and onboarding businesses, driving the bulk of the weakness versus our guidance midpoint. This resulted in non mortgage constant dollar revenue growth being just under 6% in the quarter and about 150 basis points weaker than our expectations. Total US mortgage revenue was up 29% in the quarter and also below our expectations. US mortgage revenue declined meaningfully in late December and January as mortgage rates have moved above 7%. Based on these trends, we expect 2025 mortgage revenue credit inquiries to be down 12% in 2025. Despite the pressure from weaker mortgage and hiring macros.

Speaker Change: The weaker U S hiring markets impacted our talent and onboarding businesses driving the bulk of the weakness versus our guidance midpoint.

Speaker Change: This resulted in non mortgage constant dollar revenue growth being just under 6% in the quarter and about 150 basis points weaker than our expectations.

Speaker Change: Total U S mortgage revenue was up 29% in the quarter and also below our expectations U S. Mortgage revenue declined meaningfully in late December and January as mortgage rates have moved above 7%.

Speaker Change: Based on these trends, we expect 2025 mortgage revenue credit inquiries to be down 12% in 2025.

Speaker Change: Just on these trends, we expect 2025 mortgage revenue credit inquiries to be down 12% in 2025.

Speaker Change: Despite the pressure from weaker mortgage and hiring macros Equifax delivered fourth quarter, adjusted EBITDA of $502 million, which was up about $30 million sequentially with adjusted EBITDA margin of 35, 4% in line with our October framework and this is the first quarter and Equifax history of adjusted <unk>.

Mark Begor: Equifax delivered fourth quarter Adjusted EBITDA of $502 million, which was up about $30 million sequentially, with Adjusted EBITDA margin of 35.4% in line with our October framework, and this is the first quarter in Equifax history of Adjusted EBITDA over $500 million. A big milestone for the future. Adjusted EPS of $2.12 per share was at the midpoint of our October guidance and was the first quarter of Adjusted EPS over $2 a share since the second quarter of 2022. We were disappointed that we were below October revenue guidance for fourth quarter revenue given the mortgage and hiring declines late in the quarter. However, the team performed well in managing costs and expenses to deliver on our commitments on both Adjusted EBITDA and EPS. We remain focused on delivering on our commitments and have no change in our Equifax long-term growth framework.

Equifax delivered fourth quarter Adjusted EBITDA of $502 million, which was up about $30 million sequentially, with Adjusted EBITDA margin of 35.4% in line with our October framework, and this is the first quarter in Equifax history of Adjusted EBITDA over $500 million. A big milestone for the future. Adjusted EPS of $2.12 per share was at the midpoint of our October guidance and was the first quarter of Adjusted EPS over $2 a share since the second quarter of 2022. We were disappointed that we were below October revenue guidance for fourth quarter revenue given the mortgage and hiring declines late in the quarter. However, the team performed well in managing costs and expenses to deliver on our commitments on both Adjusted EBITDA and EPS. We remain focused on delivering on our commitments and have no change in our Equifax long-term growth framework.

Speaker Change: EBITDA over $500 million.

Speaker Change: EBITDA over $500 million, a big milestone for the future.

Speaker Change: A big milestone for the future.

Speaker Change: Adjusted EPS of $2 12 per share was at the midpoint of our October guidance and was the first quarter of adjusted EPS over $2 a share since the second quarter of 2022.

Speaker Change: We were disappointed that we were below October revenue guidance for fourth quarter revenue given the mortgage and hiring declines late in the quarter. However, the team performed well in managing cost and expenses to deliver on our commitments on both adjusted EBITDA and EPS.

We were disappointed that we were below October revenue guidance for fourth quarter revenue given the mortgage and hiring declines late in the quarter. However, the team performed well in managing cost and expenses to deliver on our commitments on both adjusted EBITDA and EPS, we remain focused on delivering on our commitments and have no change in our equity.

We remain focused on delivering on our commitments and have no change in our equifax long term growth framework.

Speaker Change: <unk> long term growth framework.

Speaker Change: Turning to slide six workforce solutions revenue was up 7% in the quarter and below our October guidance, principally due to lower than expected talent solutions and I nine and Onboarding revenue from the weaker hiring market.

Mark Begor: Turning to Slide 6, Workforce Solutions revenue was up 7% in the quarter and below our October guidance, principally due to lower than expected Talent Solutions and I-9 and onboarding revenue from the weaker hiring market. Talent Solutions revenue was up 2% in the quarter. In October we discussed declining trends in hiring volume that weakened meaningfully during the fourth quarter, and in January we saw further weakening of monthly hiring volumes off the lower December levels. Despite the weaker hiring macro, Talent Solutions continues to outperform their underlying markets, benefiting from new records, new products, penetration, and pricing as well as new solutions from the new Total Verified Data Hub which includes trended employment data as well as incarceration, education, licensing, and credentialing data. Government had another strong quarter with revenue up 11% and consistent with our expectations.

Turning to Slide 6, Workforce Solutions revenue was up 7% in the quarter and below our October guidance, principally due to lower than expected Talent Solutions and I-9 and onboarding revenue from the weaker hiring market. Talent Solutions revenue was up 2% in the quarter. In October we discussed declining trends in hiring volume that weakened meaningfully during the fourth quarter, and in January we saw further weakening of monthly hiring volumes off the lower December levels. Despite the weaker hiring macro, Talent Solutions continues to outperform their underlying markets, benefiting from new records, new products, penetration, and pricing as well as new solutions from the new Total Verified Data Hub which includes trended employment data as well as incarceration, education, licensing, and credentialing data. Government had another strong quarter with revenue up 11% and consistent with our expectations.

Speaker Change: Talent solutions revenue was up 2% in the quarter and October we discussed declining trends in hiring volume that we can meaningfully during the fourth quarter.

Speaker Change: Talent solutions revenue was up 2% in the quarter and October we discussed declining trends in hiring volume that we can meaningfully during the fourth quarter and.

Speaker Change: And in January we saw further weakening of monthly hiring valliant volumes off the lower December levels.

Speaker Change: Despite the weaker hiring macro talent solutions continues to outperform their underlying markets benefiting from new records, new product penetration and pricing as well as new solutions from the new total verified data hub, which includes trended employment data as well as incarceration education and licensing and Credentialing data.

Spite the weaker hiring macro talent solutions continues to outperform their underlying markets benefiting from new records, new product penetration and pricing as well as new solutions from the new total verified data hub, which includes trended employment data as well as incarceration education and licensing and Credentialing data.

Speaker Change: Government had another strong quarter with revenue up 11% and consistent with our expectations as expected growth rates in the fourth quarter were lower than the third quarter, principally due to comping off very strong growth, we saw last year from Redetermination volumes.

Mark Begor: As expected, growth rates in the Q4 were lower than the Q3, principally due to comping off very strong growth we saw last year from redetermination volumes. We saw continued strong momentum in incarceration data sales in the Q4 with Insights revenue up double digits. EWS mortgage revenue was up 17% in the quarter with twin inquiries up 6%. EWS total mortgage revenue outperformed twin inquiries by 11%, up about 150 basis points sequentially from strong record growth in the Q4. Employer services revenue was down 9% in the quarter. The weaker hiring market also negatively impacted i9 and onboarding revenue. As I referenced earlier, the weak hiring market has continued in January and we expect it to impact Q1 performance. Workforce Solutions adjusted EBITDA margins of 51.9%. We're up a strong 70 basis points and consistent with our guidance.

As expected, growth rates in the Q4 were lower than the Q3, principally due to comping off very strong growth we saw last year from redetermination volumes. We saw continued strong momentum in incarceration data sales in the Q4 with Insights revenue up double digits. EWS mortgage revenue was up 17% in the quarter with twin inquiries up 6%. EWS total mortgage revenue outperformed twin inquiries by 11%, up about 150 basis points sequentially from strong record growth in the Q4. Employer services revenue was down 9% in the quarter. The weaker hiring market also negatively impacted i9 and onboarding revenue. As I referenced earlier, the weak hiring market has continued in January and we expect it to impact Q1 performance. Workforce Solutions adjusted EBITDA margins of 51.9%. We're up a strong 70 basis points and consistent with our guidance.

Speaker Change: We saw continued strong momentum in incarceration data sales in the fourth quarter with insights revenue up double digits.

Speaker Change: AWS mortgage revenue was up 17% in the quarter with twin inquiries up 6%.

Speaker Change: AWS total mortgage revenue outperformed twin inquiries by 11% up about 150 basis points sequentially from strong record growth in the fourth quarter.

Employer services revenue was down 9% in the quarter the weaker hiring market also negatively impacted I nine and Onboarding revenue.

Speaker Change: Employer services revenue was down 9% in the quarter the weaker hiring market also negatively impacted I nine and Onboarding revenue.

Speaker Change: And as I referenced earlier the week hiring market has continued in January and we expect it to impact first quarter performance.

And as I referenced earlier the week hiring market has continued in January and we expect it to impact first quarter performance.

Speaker Change: Workforce solutions adjusted EBITDA margins of 51, 9%.

Speaker Change: We were up a strong 70 basis points and consistent with our guidance despite the weaker than expected revenue growth.

Mark Begor: Despite the weaker than expected revenue growth, the EWS team continues to tightly manage costs while staying focused on driving top line growth. Turning to Slide 7. Twin Record Additions continue to be very strong again in the fourth quarter with active records up six million in the quarter and 20 million for the year or 12% to 188 million records. In the fourth quarter, EWS signed agreements with three new strategic partners, which brings the total new partnerships in 2024: 15. We expect these new partnerships along with our new Workday partnership to drive record growth and EWS revenue growth in 2025 at 137 million unique active records. We have plenty of room to grow the Twin database towards the TAM of about 225 million income producing Americans.

Despite the weaker than expected revenue growth, the EWS team continues to tightly manage costs while staying focused on driving top line growth. Turning to Slide 7. Twin Record Additions continue to be very strong again in the fourth quarter with active records up six million in the quarter and 20 million for the year or 12% to 188 million records. In the fourth quarter, EWS signed agreements with three new strategic partners, which brings the total new partnerships in 2024: 15. We expect these new partnerships along with our new Workday partnership to drive record growth and EWS revenue growth in 2025 at 137 million unique active records. We have plenty of room to grow the Twin database towards the TAM of about 225 million income producing Americans.

Speaker Change: Dws team continues to tightly manage costs, while staying focused on driving topline growth.

Turning to slide seven twin record additions continue to be very strong again in the fourth quarter with active records up $6 million in the quarter and $20 million for the year or 12% to 188 million records in the fourth quarter AWS signed agreements with three new strategic partners, which brings the total new partnerships in 'twenty.

Speaker Change: Turning to slide seven twin record additions continue to be very strong again in the fourth quarter with active records up $6 million in the quarter and $20 million for the year or 12% to 188 million records in the fourth quarter AWS signed agreements with three new strategic partners, which brings the total new partnerships in 2000.

Speaker Change: 24% to 15, we.

Speaker Change: 24% to 15, we expect these new partnerships along with our new Workday partnership to drive record growth in AWS revenue growth in 2025 at.

Speaker Change: We expect these new partnerships along with our new Workday partnership to drive record growth in AWS revenue growth in 2025 at.

Speaker Change: At 137 million unique active records, we have plenty of room to grow the twin database towards the Tam of about $225 million income producing Americans.

Speaker Change: Turning to slide eight U S revenue was up over 10% in the quarter driven by strong mortgage outperformance, which was consistent with our guidance and well above the U S. I S long term revenue growth framework of 6% to 8%.

Mark Begor: Turning to Slide 8, USIS revenue was up over 10% in the quarter, driven by strong mortgage outperformance, which was consistent with our guidance and well above the USIS long-term revenue growth framework of 6% to 8%. USIS non-mortgage revenue grew almost 2.5% in the quarter and was slightly below our guidance. Within online, we saw mid-single-digit growth in FI, which was an improving trend, low single-digit growth in auto, and a return to growth in our direct-to-consumer business, the segment where we principally sell data to the other credit bureaus. Telco declined in the quarter, comping off a very strong fourth quarter last year, and we saw declines in identity and fraud, principally from our chargeback management business. USIS mortgage revenue was up a very strong 47%. Mortgage credit inquiries were flat during the quarter.

Turning to Slide 8, USIS revenue was up over 10% in the quarter, driven by strong mortgage outperformance, which was consistent with our guidance and well above the USIS long-term revenue growth framework of 6% to 8%. USIS non-mortgage revenue grew almost 2.5% in the quarter and was slightly below our guidance. Within online, we saw mid-single-digit growth in FI, which was an improving trend, low single-digit growth in auto, and a return to growth in our direct-to-consumer business, the segment where we principally sell data to the other credit bureaus. Telco declined in the quarter, comping off a very strong fourth quarter last year, and we saw declines in identity and fraud, principally from our chargeback management business. USIS mortgage revenue was up a very strong 47%. Mortgage credit inquiries were flat during the quarter.

Speaker Change: U S. <unk> non mortgage revenue grew almost two 5% in the quarter and was slightly below our guidance.

Speaker Change: Within online we saw mid single digit growth in Fi, which was an improving trend low single digit growth in auto and a return to growth in our direct to consumer business. The segment, where we principally sell data to the other credit bureaus.

Within online we saw mid single digit growth in Fi, which was an improving trend low single digit growth in auto and a return to growth in our direct to consumer business. The segment, where we principally sell data to the other credit bureaus.

Speaker Change: <unk> declined in the quarter Comping off a very strong fourth quarter last year, and we saw declines in identity and fraud, principally from our chargeback management business.

Speaker Change: <unk> mortgage revenue was up a very strong 47% mortgage credit inquiries were flat during the quarter. We saw them weakened late in the quarter and declined meaningfully sequentially in December as rates moved above 7%.

Mark Begor: We saw them weaken late in the quarter and decline meaningfully sequentially in December as rates moved above 7%. The strong pricing environment along with growth in mortgage pre-approval and pre-qualification products drove the mortgage revenue growth in the fourth quarter. Mortgage pre-approval and pre-qual inquiries declined sequentially at about $115 million. USIS mortgage revenue was just over 24% of total USIS revenue in the quarter. Financial Marketing Services, our B2B offline business, was about flat in the quarter and in line with our October guidance. We saw strength in our identity-based businesses and with our expanding relationships in the payments segment. Our IXI wealth data revenue was down in the quarter comping against a very strong fourth quarter in 2023. USIS Consumer Solutions D2C business had another very strong quarter up 9% with strong growth in our consumer direct channel from strong customer acquisition trends.

We saw them weaken late in the quarter and decline meaningfully sequentially in December as rates moved above 7%. The strong pricing environment along with growth in mortgage pre-approval and pre-qualification products drove the mortgage revenue growth in the fourth quarter. Mortgage pre-approval and pre-qual inquiries declined sequentially at about $115 million. USIS mortgage revenue was just over 24% of total USIS revenue in the quarter. Financial Marketing Services, our B2B offline business, was about flat in the quarter and in line with our October guidance. We saw strength in our identity-based businesses and with our expanding relationships in the payments segment. Our IXI wealth data revenue was down in the quarter comping against a very strong fourth quarter in 2023. USIS Consumer Solutions D2C business had another very strong quarter up 9% with strong growth in our consumer direct channel from strong customer acquisition trends.

Speaker Change: The strong pricing environment, along with growth in mortgage preapproval and Prequalification products drove the mortgage revenue growth.

Speaker Change: In the fourth quarter mortgage preapproval, and pre qual inquiries declined sequentially.

Speaker Change: At about $115 million Usia's mortgage revenue was just over 24% of total <unk> revenue in the quarter.

Speaker Change: Financial marketing services, our B to B offline business was about flat in the quarter and in line with our October guidance, we saw strengthen our identity based businesses.

Speaker Change: Financial marketing services, our <unk> offline business was about flat in the quarter and in line with our October guidance, we saw strengthen our identity based businesses.

Speaker Change: And with our expanding relationships in the payments segment or ISI wealth data revenue was down in the quarter Comping against a very strong fourth quarter in 2023.

Speaker Change: <unk> consumer solutions D to C business had another very strong quarter up 9% with strong growth in our consumer direct channel from strong customer acquisition trends.

Speaker Change: U S <unk> consumer solutions D to C business had another very strong quarter up 9% with strong growth in our consumer direct channel from strong customer acquisition trends.

Speaker Change: <unk> adjusted EBITDA margins were 38, 3% in the quarter up 440 basis points sequentially and consistent with our guidance.

Mark Begor: USIS adjusted EBITDA margins were 38.3% in the quarter, up 440 basis points sequentially and consistent with our guidance. USIS performed extremely well in delivering the expected cloud cost reductions as they decommissioned legacy consumer, telco and utility technology platforms. With the USIS consumer and our telco and utilities cloud transformations complete, the USIS team is positioned well for growth in 2025 and beyond. Turning to slide 9, international revenue was up a strong 11% in constant currency and above their 7 to 9% long-term revenue framework and stronger than our October guidance. Latin American growth was very strong driven by double-digit growth in Brazil. Canada and Australia delivered higher growth rates sequentially, and Europe grew mid-single digits in the fourth quarter, which was sequentially weaker in the UK CRA, reflecting overall UK economic conditions.

USIS adjusted EBITDA margins were 38.3% in the quarter, up 440 basis points sequentially and consistent with our guidance. USIS performed extremely well in delivering the expected cloud cost reductions as they decommissioned legacy consumer, telco and utility technology platforms. With the USIS consumer and our telco and utilities cloud transformations complete, the USIS team is positioned well for growth in 2025 and beyond. Turning to slide 9, international revenue was up a strong 11% in constant currency and above their 7 to 9% long-term revenue framework and stronger than our October guidance. Latin American growth was very strong driven by double-digit growth in Brazil. Canada and Australia delivered higher growth rates sequentially, and Europe grew mid-single digits in the fourth quarter, which was sequentially weaker in the UK CRA, reflecting overall UK economic conditions.

Speaker Change: <unk> performed extremely well and delivering the expected cloud cost reductions as they decommission legacy consumer telco and utility technology platforms.

Speaker Change: With the U S consumer in our telco and utilities cloud transformation is complete the USAF team is positioned well for growth in 2025 and beyond.

Speaker Change: Turning to slide nine international revenue was up a strong 11% in constant currency and above there, 7% to 9% long term revenue framework.

Speaker Change: And stronger than our October guidance.

Speaker Change: Latin American growth was very strong driven by double digit growth in Brazil, Canada, and Australia delivered higher growth rates sequentially in Europe grew mid single digits in the fourth quarter was which was sequentially weaker than the U K CRA, reflecting overall UK economic conditions.

Speaker Change: International adjusted EBITDA margins of 32, 5% were stronger than our October guidance up 480 basis points sequentially and the highest since the fourth quarter of 2020 from strong revenue growth and good cost execution.

Mark Begor: International adjusted EBITDA margins of 32.5% were stronger than our October guidance, up 480 basis points sequentially and the highest since the fourth quarter of 2020 from strong revenue growth and good cost execution. Turning to Slide 10, we continue to make very strong progress driving innovation, new products, delivering a 12% Vitality in the fourth quarter from broad-based double-digit performances across all of our businesses. We expect strong Equifax double-digit Vitality Index again in 2025 above our 10% long-term goal. Leveraging our Equifax Cloud capabilities to drive product rollouts using our differentiated data and EFX AI capabilities. With our USIS consumer and Telco customer migrations complete, we are rapidly developing and bringing to market new solutions that include our unique twin income and employment data along with our USIS credit and alternative data assets.

International adjusted EBITDA margins of 32.5% were stronger than our October guidance, up 480 basis points sequentially and the highest since the fourth quarter of 2020 from strong revenue growth and good cost execution. Turning to Slide 10, we continue to make very strong progress driving innovation, new products, delivering a 12% Vitality in the fourth quarter from broad-based double-digit performances across all of our businesses. We expect strong Equifax double-digit Vitality Index again in 2025 above our 10% long-term goal. Leveraging our Equifax Cloud capabilities to drive product rollouts using our differentiated data and EFX AI capabilities. With our USIS consumer and Telco customer migrations complete, we are rapidly developing and bringing to market new solutions that include our unique twin income and employment data along with our USIS credit and alternative data assets.

Turning to slide 10, we continue to make very strong progress driving innovation, new products, delivering a 12% vitality in the fourth quarter from broad based double digit performances across all of our businesses.

Speaker Change: Turning to slide 10, we continue to make very strong progress driving innovation, new products, delivering a 12% vitality in the fourth quarter from broad based double digit performances across all of our businesses.

Speaker Change: We expect strong equifax double digit vitality index again in 2025 above our 10% long term goal leveraging our equifax cloud capabilities to drive product rollouts, using our differentiated data and FX dot AI capabilities.

Speaker Change: With our U S consumer and telco customer migrations complete we are rapidly developing and bringing to market new solutions that include our unique twin income and employment data along with our U S credit and alternative data assets.

Speaker Change: We expect our twin powered credit solutions to help our clients gain deeper insights into consumer credit worthiness from solutions, using both credit and twin income and employment indicators, which is a big win for our clients for consumers and equifax.

Mark Begor: We expect our twin powered credit solutions to help our clients gain deeper insights into consumer creditworthiness from solutions using both credit and twin income and employment indicators, which is a big win for our clients. For consumers and Equifax, we're rolling out a new solution that provides mortgage lenders key twin income and employment information along with the Equifax credit report. This new solution allows lenders to instantly obtain information about both a mortgage applicant's creditworthiness and the applicant's employment status with a single data request from Equifax. A huge differentiator, leveraging the power of our unique EWS and USIS data assets that are in the Equifax single data cloud fabric, we plan to launch additional OnlyEquifax solutions in 2025 for the auto vertical where both credit and income verifications are integral to credit underwriting.

We expect our twin powered credit solutions to help our clients gain deeper insights into consumer creditworthiness from solutions using both credit and twin income and employment indicators, which is a big win for our clients. For consumers and Equifax, we're rolling out a new solution that provides mortgage lenders key twin income and employment information along with the Equifax credit report. This new solution allows lenders to instantly obtain information about both a mortgage applicant's creditworthiness and the applicant's employment status with a single data request from Equifax. A huge differentiator, leveraging the power of our unique EWS and USIS data assets that are in the Equifax single data cloud fabric, we plan to launch additional OnlyEquifax solutions in 2025 for the auto vertical where both credit and income verifications are integral to credit underwriting.

Speaker Change: We're rolling out a new solution that.

Speaker Change: That provides mortgage lenders key twin income and employment information along with the Equifax credit report.

Speaker Change: This new solution allows lenders to instantly obtain information about both a mortgage applicants credit worthiness and the applicants employment status with a single data request from Equifax, a huge differentiator leveraging the power of our unique AWS and Usia's data assets that are in the Equifax single day.

Speaker Change: This new solution allows lenders to instantly obtain information about both a mortgage applicants credit worthiness and the applicators employment status with a single data request from Equifax, a huge differentiator leveraging the power of our unique AWS and <unk> data assets that are in the Equifax single day.

Speaker Change: Cloud fabric, we plan to launch additional only equifax solutions in 2025 for the auto vertical where both credit and income Verifications are integral to credit underwriting.

Speaker Change: Moving to slide 11, we enter 2025 executing well against our Equifax 2027 strategic priorities and we are well positioned to deliver continued strong AI powered new product growth leveraging new equifax cloud that will drive our topline growth.

Speaker Change: Moving to slide 11, we entered 2025 executing well against our Equifax 2027 strategic priorities and we're well positioned to deliver continued strong AI powered new product growth leveraging new equifax cloud that will drive our topline growth.

Mark Begor: Moving to slide 11, we enter 2025 executing well against our Equifax 2027 strategic priorities, and we're well positioned to deliver continued strong AI-powered new product growth. Leveraging new Equifax Cloud that will drive our top-line growth. 2025 is a pivotal year for Equifax in our ability to accelerate our free cash flow generation, and as CapEx comes down and our EBITDA expands, our strong free cash flow conversion that will approach our 95% long-term goal and leverage. Our expanding EBITDA positions Equifax to return capital to shareholders. Through both growing our dividend and launching a multi-year share repurchase program in 2025, we are continuing to face challenging end markets in the US, in US mortgage and hiring with mortgage rates above 7%. We have seen meaningful declines in hard mortgage inquiries over the past six weeks.

Moving to slide 11, we enter 2025 executing well against our Equifax 2027 strategic priorities, and we're well positioned to deliver continued strong AI-powered new product growth. Leveraging new Equifax Cloud that will drive our top-line growth. 2025 is a pivotal year for Equifax in our ability to accelerate our free cash flow generation, and as CapEx comes down and our EBITDA expands, our strong free cash flow conversion that will approach our 95% long-term goal and leverage. Our expanding EBITDA positions Equifax to return capital to shareholders. Through both growing our dividend and launching a multi-year share repurchase program in 2025, we are continuing to face challenging end markets in the US, in US mortgage and hiring with mortgage rates above 7%. We have seen meaningful declines in hard mortgage inquiries over the past six weeks.

Speaker Change: 2025 is a pivotal pivotal year for equifax, and our ability to accelerate our free cash flow generation as Capex comes down and our EBITDA expands.

Speaker Change: Our strong free cash flow conversion that will approach 90, or 95% long term goal and leverage our expanding EBITDA positions equifax to return capital to shareholders through both growing our dividend and launching a multiyear share repurchase program in 2025.

Speaker Change: We are continuing to face challenging end markets in the U S and U S mortgage and hiring with mortgage rates above 7%, we've seen meaningful declines in hard mortgage inquiries over the past six weeks.

Speaker Change: Based on those trends, our 2025 guidance reflects <unk> hard credit inquiries declining 12% compared to last year.

Speaker Change: Based on those trends, our 2025 guidance reflects usia's hard credit inquiries declining 12% compared to last year.

Mark Begor: Based on those trends, our 2025 guidance reflects USIS hard credit inquiries declining 12% compared to last year. We will continue to forecast our mortgage revenue off current EFX credit and twin inquiry run rates, and as in the past, we do not include interest rate decreases or increases in our forecasts. For perspective, the USIS hard credit inquiries that we disclose quarterly represent over 70% of total USIS mortgage revenue in 2024. Also, based on weak hiring trends over the past eight weeks, we expect 2025 US hiring to be down about 8% relative to 2024 and on the order of over 10% below average BLS hires over the last 10 years and last. With the US dollar strengthened significantly over the past three months and at current FX rates, 2025 revenue will be negatively impacted by about 130 basis points or about $75 million.

Based on those trends, our 2025 guidance reflects USIS hard credit inquiries declining 12% compared to last year. We will continue to forecast our mortgage revenue off current EFX credit and twin inquiry run rates, and as in the past, we do not include interest rate decreases or increases in our forecasts. For perspective, the USIS hard credit inquiries that we disclose quarterly represent over 70% of total USIS mortgage revenue in 2024. Also, based on weak hiring trends over the past eight weeks, we expect 2025 US hiring to be down about 8% relative to 2024 and on the order of over 10% below average BLS hires over the last 10 years and last. With the US dollar strengthened significantly over the past three months and at current FX rates, 2025 revenue will be negatively impacted by about 130 basis points or about $75 million.

Speaker Change: We will continue to forecast our mortgage revenue off current FX credit and twin inquiry run rates and as in the past. We do not include interest rate decreases or increases in our forecasts.

Speaker Change: For perspective, the U S. I S hard credit inquiries that we disclose quarterly represent over 70% of total <unk> mortgage revenue in 2024.

Speaker Change: Also based on weak hiring trends over the past eight weeks, we expect 2025 U S hiring be down about 8% relative to 2024 and enter the order of over 10% below average BLS hires over the last 10 years.

Speaker Change: And last with the U S dollar strengthened significantly over the past three months and at current FX rates 2025 revenue will be negatively impacted by about 130 basis points or about $75 million.

Speaker Change: Based on these economic assumptions, we expect to deliver 2025 revenue of about $5 95 billion up four 7% on a reported basis at the midpoint of our guidance.

Mark Begor: Based on these economic assumptions, we expect to deliver 2025 revenue of about $5.95 billion, up 4.7% on a reported basis. At the midpoint of our guidance, constant currency revenue growth is expected to be about 6%. With both mortgage and non-mortgage constant currency revenue up about 6% in 2025. The assumed declines in the US mortgage and hiring markets are impacting our overall growth rate by over 200 basis points. Absent these mortgage and hiring market declines, 2025 organic constant dollar revenue growth would be at the midpoint of our long-term organic growth framework of 7% to 10%. At the business unit level, we expect Workforce Solutions to deliver revenue growth of over 7% in 2025. Verification Services revenue is expected to be up about 8%, and lower than our long-term framework due to the weak mortgage and hiring markets.

Based on these economic assumptions, we expect to deliver 2025 revenue of about $5.95 billion, up 4.7% on a reported basis. At the midpoint of our guidance, constant currency revenue growth is expected to be about 6%. With both mortgage and non-mortgage constant currency revenue up about 6% in 2025. The assumed declines in the US mortgage and hiring markets are impacting our overall growth rate by over 200 basis points. Absent these mortgage and hiring market declines, 2025 organic constant dollar revenue growth would be at the midpoint of our long-term organic growth framework of 7% to 10%. At the business unit level, we expect Workforce Solutions to deliver revenue growth of over 7% in 2025. Verification Services revenue is expected to be up about 8%, and lower than our long-term framework due to the weak mortgage and hiring markets.

Speaker Change: Constant currency revenue growth is expected to be about 6% with both mortgage and non mortgage constant currency revenue up about 6% in 2025.

Speaker Change: The assumed declines in the U S mortgage and hiring markets are impacting our overall growth rate by over 200 basis points absent these mortgage and hiring market declines 2025 organic constant dollar revenue growth would be at the midpoint of our long term organic framework organic growth framework of 7% to 10%.

Speaker Change: At the business unit level, we expect workforce solutions to deliver revenue growth of over 7% in 2025.

Speaker Change: Verification services revenue is expected to be up about 8% and lower than our long term framework due to the weak mortgage and hiring markets.

Speaker Change: Verification services revenue.

Speaker Change: Expected to be up about 8% and lower than our long term framework due to the weak mortgage and hiring markets.

Speaker Change: Mortgage revenue was expected to be up about 3% due to the impact of the expected decline in the U S mortgage market non.

Speaker Change: Mortgage revenue is expected to be up about 3% due to the impact of the expected decline in the U S mortgage market.

Mark Begor: Mortgage revenue is expected to be up about 3% due to the impact of the expected decline in the US mortgage market. Non-mortgage verification revenue is expected to be up over 9%, down from the levels seen in 2024, principally driven by the expected decline in US hiring and the resulting expected mid-single-digit growth in our talent business, and government. Growth is expected to be impacted due to tough 2024 comps and some weakness in H1 2025 as states adjust to modified CE, CMS, and USDA Food and Nutrition Service funding practices. Government revenue growth should return to double-digit levels in H2 2025. Continued strong Twin record growth, a Vitality Index over our 10% Equifax goal, and continued growth in both pricing and penetration will continue to drive verification services revenue growth.

Mortgage revenue is expected to be up about 3% due to the impact of the expected decline in the US mortgage market. Non-mortgage verification revenue is expected to be up over 9%, down from the levels seen in 2024, principally driven by the expected decline in US hiring and the resulting expected mid-single-digit growth in our talent business, and government. Growth is expected to be impacted due to tough 2024 comps and some weakness in H1 2025 as states adjust to modified CE, CMS, and USDA Food and Nutrition Service funding practices. Government revenue growth should return to double-digit levels in H2 2025. Continued strong Twin record growth, a Vitality Index over our 10% Equifax goal, and continued growth in both pricing and penetration will continue to drive verification services revenue growth.

Speaker Change: Non mortgage verifier revenue is expected to be up over 9% down from the levels seen in 2024, principally driven by the expected decline in U S hiring and the resulting expected mid mid single.

Speaker Change: Single digit growth in our talent business.

Speaker Change: And government growth is expected to be impacted due to tough 2024 comps comps and some weakness in the first half of 2025 as states adjusted modified CMS and USDA food and nutrition service funding practices.

Speaker Change: And government growth is expected to be impacted due to tough 2024 comps comps and some weakness in the first half of 2025 as states adjust to modified CMS and USDA food and nutrition service funding practices.

Speaker Change: <unk> growth revenue growth should return to double digit levels in the second half of 2025.

Speaker Change: Government growth revenue growth should return to double digit levels in the second half of 2025.

Speaker Change: Continued strong twin record growth of vitality index of over our 10% Equifax goal and continued growth in both pricing and penetration will continue to drive verification services revenue growth, despite the mortgage market and hiring market headwinds.

Mark Begor: Despite the mortgage market and hiring market headwinds, we expect employer services to be about flat in 2025 with growth also impacted by the expected declines in US hiring and onboarding. We expect USIS to deliver revenue growth over 5% in 2025 which would bring USIS revenue to about $2 billion. We expect mortgage revenue to grow over 8% despite the expected 12% decline in hard mortgage credit inquiries. Non-mortgage revenue growth is expected to grow about 4% up from 2% last year, and USIS revenue is expected to benefit from accelerating NPIS and share gains as they leverage the new Equifax Cloud. We expect international constant currency revenue growth to be about 7% in 2025 consistent with their 7% to 9% long-term financial framework.

Despite the mortgage market and hiring market headwinds, we expect employer services to be about flat in 2025 with growth also impacted by the expected declines in US hiring and onboarding. We expect USIS to deliver revenue growth over 5% in 2025 which would bring USIS revenue to about $2 billion. We expect mortgage revenue to grow over 8% despite the expected 12% decline in hard mortgage credit inquiries. Non-mortgage revenue growth is expected to grow about 4% up from 2% last year, and USIS revenue is expected to benefit from accelerating NPIS and share gains as they leverage the new Equifax Cloud. We expect international constant currency revenue growth to be about 7% in 2025 consistent with their 7% to 9% long-term financial framework.

Speaker Change: We expect employer services to be about flat in 2025 with gross growth also impacted by the expected declines in U S hiring and Onboarding.

Speaker Change: We expect <unk> to deliver revenue growth over 5% in 2025, which would bring us usia's revenue to about $2 billion.

Speaker Change: We expect <unk> to deliver revenue growth over 5% in 2025, which would bring us <unk> revenue to about $2 billion.

Speaker Change: We expect mortgage revenue to grow over 8%. Despite the expected 12% decline in hard mortgage credit inquiries.

Speaker Change: Non mortgage revenue growth is expected to grow about 4% up from 2% last year.

Speaker Change: Non mortgage revenue growth is expected to grow about 4% up from 2% last year and <unk> revenue is expected to benefit from accelerating ntis and share gains as they leverage the new Equifax cloud.

Speaker Change: <unk> revenue is expected to benefit from accelerating NPI and share gains as they leverage the new Equifax cloud.

Speaker Change: And we expect international constant currency revenue growth to be about 7% in 2025, consistent with their 7% to 9% long term financial framework.

Speaker Change: At these revenue levels and at the midpoint of our guidance EBITDA margins should increase about 25 basis points with EBITDA, increasing about 5% to over $1 9 billion.

Mark Begor: At these revenue levels and at the midpoint of our guidance, EBITDA margins should increase about 25 basis points, with EBITDA increasing about 5% to over $1.9 billion. Adjusted EPS at the midpoint of our guidance is expected to be $7.45 per share, up 2% over last year, with free cash flow at about $900 million and free cash flow conversion at about our long-term target of 95%. With our leverage now below 2.6x, we are well positioned to continue our bolt-on acquisition strategy and start increasing the return of capital to shareholders through both growing the dividend and a multi-year share repurchase program during 2025. Now I'd like to turn over to John to provide more detail on our 2025 assumptions and guidance and also provide our first quarter framework.

At these revenue levels and at the midpoint of our guidance, EBITDA margins should increase about 25 basis points, with EBITDA increasing about 5% to over $1.9 billion. Adjusted EPS at the midpoint of our guidance is expected to be $7.45 per share, up 2% over last year, with free cash flow at about $900 million and free cash flow conversion at about our long-term target of 95%. With our leverage now below 2.6x, we are well positioned to continue our bolt-on acquisition strategy and start increasing the return of capital to shareholders through both growing the dividend and a multi-year share repurchase program during 2025. Now I'd like to turn over to John to provide more detail on our 2025 assumptions and guidance and also provide our first quarter framework.

Speaker Change: Adjusted EPS at the midpoint of our guidance is expected to be.

Speaker Change: Adjusted EPS at the midpoint of our guidance is expected to be <unk>.

Speaker Change: $7 45 per share up 2% over last year with free cash flow at about $900 million and free cash flow conversion at about our long term target of 95%.

Speaker Change: $7 45 per share up 2% over last year with free cash flow at about $900 million.

Speaker Change: And free cash flow conversion at about our long term target of 95%.

Speaker Change: With our leverage now below two six turns we are well positioned to continue our bolt on acquisition strategy and start increasing the return of capital to shareholders through both growing the dividend in a multi share repurchase program during 19 during 2025.

Speaker Change: Now I'd like to turn it over to Jon to provide more detail on our 2025 assumptions in guidance and also provide our first quarter framework.

Jon: Thanks, Mark as Mark discussed and as shown on slide 12, our planning assumes usia's hard mortgage credit inquiries are down about 13% and <unk> 25, and 12% for all of 2025, which again in 2024 represented over 70% of <unk> mortgage revenue.

John Gamble: Thanks Mark. As Mark discussed and as shown on slide 12, our planning assumes USIS hard mortgage credit inquiries are down about 13% in Q1 2025 and 12% for all of 2025, which again in 2024 represented over 70% of USIS mortgage revenue. Sequentially, we are assuming that our US mortgage business will have normal seasonality in 2025. Slide 13 provides the specifics of our 2025 full year guidance. 2025 is being significantly impacted by declines in US mortgage and hiring markets as well as negative FX. The year to year declines in these markets are impacting revenue growth by over 200 basis points, adjusted EBITDA margins by about 150 basis points, and Equifax adjusted EPS growth by about 7 percentage points. Absent these market factors, our constant currency revenue growth would be consistent with our 7 to 10% long term framework and adjusted EPS growth would be approaching 10%.

Jon: Sequentially, we are assuming that our U S mortgage business, we'll have normal seasonality in 2025.

Jon: Slide 13 provides the specifics of our 2025 full year guidance 2025 is being significantly impacted by declines in U S mortgage and hiring markets as well as negative FX the year to year declines in these markets are impacting revenue growth by over 200 basis points adjusted EBITDA margins.

Jon: By about 150 basis points and Equifax adjusted EPS growth by about seven percentage points apps.

Jon: By about 150 basis points and Equifax adjusted EPS growth by about seven percentage points.

Jon: Absent these market factors, our constant currency revenue growth would be consistent with our 7% to 10% long term framework.

Jon: And adjusted EPS growth would be approaching 10%.

Jon: Slide 13 also includes additional detail unexpected Bu adjusted EBITDA margins as well as guidance on specific P&L line items.

John Gamble: Slide 13 also includes additional detail on expected BU adjusted EBITDA margins as well as guidance on specific P and L line items. Equifax EBITDA margins are expected to be up about 25 basis points in 2025, which is below the 50 basis points of annual improvement in our long-term framework principally due to revenue growth also being below our long-term framework due to market factors we just discussed. The benefits from the cost actions Mark referenced are benefiting margins, more than offsetting the impact of higher costs, particularly in USIS mortgage EWS. EBITDA margins in 2025 are about 50.5% down from the 51.8% delivered in 2024. Margins in 2025 are impacted by lower revenue growth levels, revenue mix, as well as costs related to the addition and onboarding of twin partners.

Slide 13 also includes additional detail on expected BU adjusted EBITDA margins as well as guidance on specific P and L line items. Equifax EBITDA margins are expected to be up about 25 basis points in 2025, which is below the 50 basis points of annual improvement in our long-term framework principally due to revenue growth also being below our long-term framework due to market factors we just discussed. The benefits from the cost actions Mark referenced are benefiting margins, more than offsetting the impact of higher costs, particularly in USIS mortgage EWS. EBITDA margins in 2025 are about 50.5% down from the 51.8% delivered in 2024. Margins in 2025 are impacted by lower revenue growth levels, revenue mix, as well as costs related to the addition and onboarding of twin partners.

Speaker Change: Equifax EBITDA margins are expected to be up about 25 basis points from 2025, which is below the 50 basis points of annual improvement in our long term framework principally due to revenue growth also being below our long term framework due to market factors. We just discussed the benefits from the cost actions Marc.

Jon: <unk> EBITDA margins are expected to be up about 25 basis points in 2025, which is below the 50 basis points of annual improvement in our long term framework.

Speaker Change: <unk> due to revenue growth also being below our long term framework due to market factors. We just discussed the benefits from the cost actions Marc referenced are benefiting margins more than offsetting the impact of higher costs, particularly in <unk> mortgage.

Speaker Change: <unk> are benefiting margins more than offsetting the impact of higher costs, particularly in USA is mortgage.

Speaker Change: UWS EBITDA margins in 2025 or about 55% down from the 51, 8% delivered in 2020 for margins in 2025 are impacted by lower revenue growth levels revenue mix as well as costs related to the addition, and boarding of twin partners.

Speaker Change: Dws EBITDA margins in 2025 or about 55% down from the 51, 8% delivered in 2020 for margins in 2025 are impacted by lower revenue growth levels revenue mix as well as costs related to the addition, and boarding of twin partners.

Speaker Change: <unk> EBITA margins at about 35, 5% are expected to be up about 100 basis points year to year, realizing the full year benefit of cost reductions from decommissioning legacy systems again more than offsetting higher costs, particularly in mortgage <unk>.

John Gamble: USIS EBITDA margins at about 35.5% are expected to be up about 100 basis points year to year, realizing the full year benefit of cost reductions from decommissioning legacy systems, again more than offsetting higher costs, particularly in Mortgage International. EBITDA margins at about 28.5% are expected to expand about 100 basis points from 2024, benefiting from revenue growth and 2024 cost actions related to decommissioning legacy systems. Corporate expense excluding depreciation and amortization is increasing in 2025 relative to 2024 principally due to increased variable compensation as we return to target levels of incentive payouts as well as continued investments in corporate technology, security, and compliance.

USIS EBITDA margins at about 35.5% are expected to be up about 100 basis points year to year, realizing the full year benefit of cost reductions from decommissioning legacy systems, again more than offsetting higher costs, particularly in Mortgage International. EBITDA margins at about 28.5% are expected to expand about 100 basis points from 2024, benefiting from revenue growth and 2024 cost actions related to decommissioning legacy systems. Corporate expense excluding depreciation and amortization is increasing in 2025 relative to 2024 principally due to increased variable compensation as we return to target levels of incentive payouts as well as continued investments in corporate technology, security, and compliance.

Speaker Change: International EBITDA margins at about 28, 5% are expected to expand about 100 basis points from 2024 benefiting from revenue growth and 2020 for cost actions related to decommissioning legacy systems.

Speaker Change: Corporate expense, excluding depreciation and amortization is increasing in 2025 relative to 2024, principally due to increased variable compensation as we returned to target levels of incentive payouts as well as continued investments in corporate technology security and compliance.

Depreciation and amortization is expected to increase by about $55 million in 2025, as we put significant north American and other cloud native systems into production in 2024, and our estimated tax rate is expected to be about 26, 75% in 2025 and above.

Speaker Change: Depreciation and amortization is expected to increase by about $55 million in 2025, as we put significant north American and other cloud native systems into production in 2024, and our estimated tax rate is expected to be about 26, 75% in 2025 and above.

John Gamble: Depreciation and amortization is expected to increase by about $55 million in 2025 as we put significant North American and other cloud native systems into production in 2024, and our estimated tax rate is expected to be about 26.75% in 2025 and above 2024 due principally to increased impact of overseas taxes and lower US development tax credits as we reduce capital spending. Capital spending should be about $480 million in 2025, down from $496 million in 2024. As we complete the cloud, more of our capital spending will be dedicated to innovation driving revenue growth versus building our infrastructure. We believe that our guidance is centered at the midpoint of both our revenue and adjusted EPS guidance ranges. Slide 14 provides the details of our Q1 2025 guidance.

Depreciation and amortization is expected to increase by about $55 million in 2025 as we put significant North American and other cloud native systems into production in 2024, and our estimated tax rate is expected to be about 26.75% in 2025 and above 2024 due principally to increased impact of overseas taxes and lower US development tax credits as we reduce capital spending. Capital spending should be about $480 million in 2025, down from $496 million in 2024. As we complete the cloud, more of our capital spending will be dedicated to innovation driving revenue growth versus building our infrastructure. We believe that our guidance is centered at the midpoint of both our revenue and adjusted EPS guidance ranges. Slide 14 provides the details of our Q1 2025 guidance.

Speaker Change: 24, due principally to increased impact of overseas taxes, and lower U S development tax credits as we reduced capital spending.

Speaker Change: Capital spending should be about $480 million in 2025 down from $496 million in 2024, and as we complete the cloud more of our capital spending will be dedicated to innovation driving revenue growth versus building our infrastructure.

Speaker Change: We believe that our guidance is centered at the midpoint of both our revenue and adjusted EPS guidance ranges.

Speaker Change: Slide 14 provides the details of our <unk> 25 guidance and <unk> 25, we expect total equifax revenue to be between $1 390, and 1420 $1 billion.

Speaker Change: Slide 14 provides the details of our <unk> 25 guidance and <unk> 25, we expect total equifax revenue to be between $1 390, and one 420 billion.

John Gamble: In Q1 2025 we expect total Equifax revenue to be between $1.390 and $1.420 billion, up about 1% on a reported basis year to year at the midpoint. Constant dollar revenue growth at the midpoint is almost 3%. Adjusted EPS in Q1 2025 is expected to be $1.33 to $1.43 per share, down 8% versus Q1 2024 at the midpoint. The decline in adjusted EPS of about $0.12 per share is principally driven by higher depreciation and amortization of about $15 million or $0.09 a share and the higher effective tax rate in Q1 2025 reducing adj by about $0.02 a share. Equifax Q1 2025 adjusted EBITDA margins are expected to be about 28.5% at the midpoint of our guidance, down about 50 basis points year to year. The sequential decline in adjusted EBITDA margins reflect seasonally higher fourth quarter revenue and higher first quarter equity compensation.

In Q1 2025 we expect total Equifax revenue to be between $1.390 and $1.420 billion, up about 1% on a reported basis year to year at the midpoint. Constant dollar revenue growth at the midpoint is almost 3%. Adjusted EPS in Q1 2025 is expected to be $1.33 to $1.43 per share, down 8% versus Q1 2024 at the midpoint. The decline in adjusted EPS of about $0.12 per share is principally driven by higher depreciation and amortization of about $15 million or $0.09 a share and the higher effective tax rate in Q1 2025 reducing adj by about $0.02 a share. Equifax Q1 2025 adjusted EBITDA margins are expected to be about 28.5% at the midpoint of our guidance, down about 50 basis points year to year. The sequential decline in adjusted EBITDA margins reflect seasonally higher fourth quarter revenue and higher first quarter equity compensation.

Speaker Change: Up about 1% on a reported basis year to year at the midpoint.

Speaker Change: Constant dollar revenue growth at the midpoint is almost 3% adjusted.

Adjusted EPS in <unk> 25 is expected to be $1 33 to $1 43 per share down 8% versus <unk> 24 at the midpoint.

Speaker Change: Adjusted EPS in <unk> 25 is expected to be $1 33 to $1 43 per share down 8% versus <unk> 24 at the midpoint.

Speaker Change: The decline in adjusted EPS of about <unk> 12 per share is principally driven by higher depreciation and amortization.

Speaker Change: Of about $15 million or <unk> <unk> cents a share.

Speaker Change: Of about $15 million or nine cents, a share and the higher effective tax rate and <unk> 25, reducing adjusted EPS by about <unk> a share.

Speaker Change: The higher effective tax rate and <unk> 25, reducing adjusted EPS by about two cents a share.

Speaker Change: Equifax <unk> 25, adjusted EBITDA margins are expected to be about 28, 5% at the midpoint of our guidance down about 50 basis points year to year. The sequential decline in adjusted EBITDA margins reflects seasonally higher fourth quarter revenue and higher first quarter equity compensation.

Speaker Change: Business unit performance in the first quarter is expected to be as follows workforce solutions revenue growth is expected to be up about 1% year to year verification services revenue is expected to be up two 5%.

John Gamble: Business unit performance in Q1 is expected to be as follows. Workforce Solutions revenue growth is expected to be up about 1% year to year. Verification Services revenue is expected to be up 2.5%. Mortgage revenue is expected to be about flat with growth in records and pricing offset by the expected continued mortgage market decline. Verifier non-mortgage revenue is expected to be up about 3.5%. Government revenue is expected to be about flat with a difficult comp vs. Q1 2024 CMS redetermination volumes and, as Mark indicated, some weakness in H1 2025 as states adjust to modified CMS and USDA Food and Nutrition Service funding practices. Government revenue growth should return to double-digit levels in H2 2025. Talent revenue should be up mid-single digits as growth is impacted by expected declines in US hiring.

Business unit performance in Q1 is expected to be as follows. Workforce Solutions revenue growth is expected to be up about 1% year to year. Verification Services revenue is expected to be up 2.5%. Mortgage revenue is expected to be about flat with growth in records and pricing offset by the expected continued mortgage market decline. Verifier non-mortgage revenue is expected to be up about 3.5%. Government revenue is expected to be about flat with a difficult comp vs. Q1 2024 CMS redetermination volumes and, as Mark indicated, some weakness in H1 2025 as states adjust to modified CMS and USDA Food and Nutrition Service funding practices. Government revenue growth should return to double-digit levels in H2 2025. Talent revenue should be up mid-single digits as growth is impacted by expected declines in US hiring.

Speaker Change: Mortgage revenue is expected to be about flat with growth in records in pricing offset by the expected continued mortgage market decline.

Speaker Change: <unk> non mortgage revenue is expected to be up about three 5% government revenue is expected to be about flat with a difficult comp versus <unk> 2000, and for CMS redetermination volumes and as Mark indicated some weakness from the first half of 2025 states adjust to modified CMS and USDA food.

Speaker Change: Verifier non mortgage revenue is expected to be up about three 5% government revenue is expected to be about flat with a difficult comp versus <unk> 24, CMS redetermination volumes and as Mark indicated some weakness in the first half of 2025 states adjust to modified CMS and USDA food.

Speaker Change: And nutrition service funding practices government revenue growth should return to double digit levels in the second half of 'twenty five.

Speaker Change: Talent revenue should be up mid single digits as growth was impacted by expected declines in U S. Hiring employer revenue is expected to be down mid single digits UWS. Adjusted EBITDA margins are expected to be about 49% down about 200 basis points due to the lower revenue growth and cost impacts from boarding record contributors.

John Gamble: Employer revenue is expected to be down mid single digits. EWS Adjusted EBITDA margins are expected to be about 4.49% down about 200 basis points due to the lower revenue growth and cost impacts from boarding record contributors. USIS revenue is expected to be up about 3% year to year. Mortgage revenue is expected to be up about 5% and non mortgage revenue is expected to be up about 2.5%. Mortgage growth is being impacted by significant declines in USIS hard inquiries which are being more than offset principally by third party vendor pricing actions. Adjusted EBITDA margins are expected to be up 150 basis points at about 34% again reflecting the benefits from USIS decommissioned legacy consumer and telco and utility systems. International revenue is expected to be up about 6% in constant currency.

Employer revenue is expected to be down mid single digits. EWS Adjusted EBITDA margins are expected to be about 4.49% down about 200 basis points due to the lower revenue growth and cost impacts from boarding record contributors. USIS revenue is expected to be up about 3% year to year. Mortgage revenue is expected to be up about 5% and non mortgage revenue is expected to be up about 2.5%. Mortgage growth is being impacted by significant declines in USIS hard inquiries which are being more than offset principally by third party vendor pricing actions. Adjusted EBITDA margins are expected to be up 150 basis points at about 34% again reflecting the benefits from USIS decommissioned legacy consumer and telco and utility systems. International revenue is expected to be up about 6% in constant currency.

Speaker Change: <unk> revenue is expected to be up about 3% year to year mortgage revenue is expected to be up about 5% and non mortgage revenue is expected to be up about two 5% mortgage growth is being impacted by significant declines in U S. I S hard inquiries, which are being more than offset principally by third party vendor.

Speaker Change: Pricing actions adjusted EBITDA margins are expected to be up 150 basis points at about 34% again, reflecting the benefits from Usaf's decommission, the legacy consumer and telco and utility systems International revenue is expected to be up about 6% in constant currency adjusted EBITDA margins are.

Speaker Change: Pricing actions adjusted EBITDA margins are expected to be up 150 basis points at about 34% again, reflecting the benefits from U S. I S decommissioned legacy consumer and telco and utility systems International revenue is expected to be up about 6% in constant currency adjusted EBITDA margins are.

Speaker Change: <unk> to be flat year to year and $1 25.

John Gamble: Adjusted EBITDA margins are expected to be flat year to year in Q1 2025. Turning to Slide 15, free cash flow is expected to continue to strengthen to about $900 million and approach our 95% cash conversion goal in 2025. As Mark indicated, as we have reached leverage levels consistent with our long-term goals and targeted BBB2 credit ratings, we have significant flexibility to both restart bolt-on acquisitions and increase capital return to shareholders. Turning to Slide 16, the US mortgage market assumed in our 2025 guidance is over 50% below its historic average hard credit inquiry level as the mortgage market recovers toward its historic norms at current mortgage pricing and mix and current twin records. That represents on the order of $1.2 billion of annual revenue opportunity for Equifax at current average mortgage growth margins.

Adjusted EBITDA margins are expected to be flat year to year in Q1 2025. Turning to Slide 15, free cash flow is expected to continue to strengthen to about $900 million and approach our 95% cash conversion goal in 2025. As Mark indicated, as we have reached leverage levels consistent with our long-term goals and targeted BBB2 credit ratings, we have significant flexibility to both restart bolt-on acquisitions and increase capital return to shareholders. Turning to Slide 16, the US mortgage market assumed in our 2025 guidance is over 50% below its historic average hard credit inquiry level as the mortgage market recovers toward its historic norms at current mortgage pricing and mix and current twin records. That represents on the order of $1.2 billion of annual revenue opportunity for Equifax at current average mortgage growth margins.

Speaker Change: Turning to slide 15 free cash flow is expected to continue to strengthen to about $900 million and approach our 95% cash conversion goal in 2025 as Mark indicated as we have reached leverage levels consistent with our long term goals and targeted triple B <unk> two credit ratings, we have significant flexibility.

Speaker Change: Turning to slide 15 free cash flow is expected to continue to strengthen to about $900 million and approach our 95% cash conversion goal in 2025 as Mark indicated as we have reached leverage levels consistent with our long term goals and targeted triple B <unk> credit ratings, we have significant flexibility to.

Speaker Change: Ability to both the restart bolt on acquisitions and increased capital returned to shareholders.

Speaker Change: Both the restart bolt on acquisitions and increased capital return to shareholders.

Speaker Change: Turning to slide 16, the U S mortgage market assumed in our 2025 guidance is over 50% below its historic average hard credit inquiry levels as the mortgage market recovers toward its historic norms at current mortgage pricing and mix and current twin records that represents on the order of $1 $2 billion of annual revenue opportunity.

Speaker Change: D for Equifax at current average mortgage growth margins. This will deliver adjusted EBITDA and adjusted EPS above the $700 million and $4 per share respectively that we have discussed with you in the past.

Speaker Change: For Equifax.

Speaker Change: At current average mortgage growth margins this will deliver adjusted EBITDA and adjusted EPS above the $700 million and $4 per share respectively that we have discussed with you in the past and.

John Gamble: This would deliver Adjusted EBITDA and Adjusted EPS above the $700 million and $4 per share respectively that we have discussed with you in the past and that we would expect to move into our P&L as the mortgage market recovers toward normal levels in 2026 and beyond. Now I'd like to turn it back over to Mark.

This would deliver Adjusted EBITDA and Adjusted EPS above the $700 million and $4 per share respectively that we have discussed with you in the past and that we would expect to move into our P&L as the mortgage market recovers toward normal levels in 2026 and beyond. Now I'd like to turn it back over to Mark.

Speaker Change: We would expect to move into our P&L as the mortgage market recovers toward normal levels in 2026 and beyond now I would like to turn it back over to Mark.

Mark: And that we would expect to move into our P&L as the mortgage market recovery toward normal levels in 2026, and beyond now I would like to turn it back over to Mark.

Mark: Thanks, John.

Speaker Change: Turning to slide 17 in 2025, our guidance reflects a challenging markets in both U S mortgage and hiring resulting in our expectation that constant currency revenue at 6% will be below our long term financial framework.

Mark: Turning to slide 17 in 2025, our guidance reflects the challenging markets in both U S mortgage and hiring resulting in our expectation that constant currency revenue at 6% will be below our long term financial framework.

Mark Begor: Thanks John. Turning to slide 17, in 2025 our guidance reflects challenging markets in both US mortgage and hiring, resulting in our expectation that constant currency revenue at 6% will be below our long-term financial framework. Despite this end-market weakness, we expect to deliver adjusted EBITDA of over $1.9 billion driven by margin expansion of 25 basis points and about $900 million of free cash flow from cash conversion of about 95%. As end markets normalize, we are confident in our ability to deliver organic revenue growth in our 7 to 10% long-term range, continue expanding EBITDA margins at 50 basis points per year, and growing cash conversion at above 95% while executing on our bolt-on M&A strategy, and in 2025 we expect a significantly increased return of capital to shareholders.

Despite this end market weakness, we expect to deliver adjusted EBITDA of over $1 9 billion driven by margin expansion of 25 basis points and about $900 million of free cash flow from cash conversion of about 95% as.

Mark: Despite this end market weakness, we expect to deliver adjusted EBITDA of over $1 9 billion driven by margin expansion of 25 basis points and about $900 million of free cash flow from cash conversion of about 95%.

Speaker Change: <unk> end markets normalize we are confident in our ability to deliver organic revenue growth in our 7% to 10% long term range.

Mark: As end markets normalize we are confident in our ability to deliver organic revenue growth in our 7% to 10% long term range.

Speaker Change: Expanding EBITDA margins of 50 basis points per year, and growing cash conversion at above 95%, while executing on our bolt on M&A strategy.

Mark: Expanding EBITDA margins of 50 basis points per year, and growing cash conversion at above 95%, while executing on our bolt on M&A strategy.

Speaker Change: And in 2025, we expect to significantly increase return of capital to shareholders.

Mark: And in 2025, we expect to significantly increase return of capital to shareholders.

Speaker Change: Wrapping up on slide 18 in 2020 for Equifax delivered financial performance in 2024 that was in line with the goals. We set at the beginning of the year with revenue up almost 8% on a reported basis and on an organic constant currency basis.

Mark: Wrapping up on slide 18 in 2020 for Equifax delivered financial performance in 2024 that was in line with the goals. We set at the beginning of the year with revenue up almost 8% on a reported basis and on an organic constant currency basis.

Mark Begor: Wrapping up on slide 18, in 2024 Equifax delivered financial performance in 2024 that was in line with the goals we set at the beginning of the year. With revenue up almost 8% on a reported basis, and on an organic constant currency basis. Adjusted EPS at $7.29 per share, up 8.5%, free cash flow of $813 million, and cash conversion of 89%. We had strong execution against our EFX 2027 strategic priorities in a challenging economic environment. We delivered on the critical priority of completing our North American consumer cloud transformation, as well as significant portions of our global markets. With close to 85% of Equifax revenue now in the new Equifax Cloud. Our cloud native infrastructure is already providing competitive advantages of always on stability, faster data transmission speeds, and industry leading security for our customers.

Wrapping up on slide 18, in 2024 Equifax delivered financial performance in 2024 that was in line with the goals we set at the beginning of the year. With revenue up almost 8% on a reported basis, and on an organic constant currency basis. Adjusted EPS at $7.29 per share, up 8.5%, free cash flow of $813 million, and cash conversion of 89%. We had strong execution against our EFX 2027 strategic priorities in a challenging economic environment. We delivered on the critical priority of completing our North American consumer cloud transformation, as well as significant portions of our global markets. With close to 85% of Equifax revenue now in the new Equifax Cloud. Our cloud native infrastructure is already providing competitive advantages of always on stability, faster data transmission speeds, and industry leading security for our customers.

Speaker Change: Adjusted EPS at $7 29 per share up eight 5% free cash flow of $813 million in cash conversion of 89%.

Mark: Adjusted EPS at $7 29 per share up eight 5% free cash flow of $813 million in cash conversion of 89%.

Speaker Change: And we had strong execution against our <unk> 2027 strategic priorities in a challenging economic environment.

Mark: And we had strong execution against our <unk> 2027 strategic priorities in a challenging economic environment.

Speaker Change: We delivered on the critical priority of completing our North American consumer cloud transformation as well as significant portions of our global markets with close to 85% of Equifax revenue now in the new Equifax cloud.

Mark: We delivered on the critical priority of completing our North American consumer cloud transformation as well as significant portions of our global markets with close to 85% of Equifax revenue now in the new Equifax cloud.

Speaker Change: Our cloud native infrastructure is already providing competitive advantages have always on stability faster data transmission speeds and industry, leading security for our customers and importantly, equifax resources and technology product and DNA are pivoting from building to leveraging the equifax cloud for innovation, new products and growth.

Mark: Our cloud native infrastructure is already providing competitive advantages, though always on stability faster data transmission speeds and industry, leading security for our customers and importantly, equifax resources and technology product and DNA are pivoting from building to leveraging the equifax cloud for innovation, new products and growth.

Mark Begor: And importantly, Equifax resources and technology, product, and DNA are pivoting from building to leveraging the Equifax Cloud for innovation, new products, and growth. We are using our single data fabric, EFX AI, and Ignite, our analytics platform, to develop new credit solutions powered by twin indicators in verticals like mortgage and auto that only Equifax can deliver, which we expect will lead to share gains and growth for our USIS business. Exiting 2024 with close to 85% of Equifax revenue in our new cloud environment is a huge milestone for the team, so we can fully focus on growth. We are also at an important inflection point with our accelerating free cash flow and a strong balance sheet to position Equifax to return our substantial excess free cash flow to shareholders in 2025. We are entering the next chapter of Equifax with our cloud transformation substantially complete.

And importantly, Equifax resources and technology, product, and DNA are pivoting from building to leveraging the Equifax Cloud for innovation, new products, and growth. We are using our single data fabric, EFX AI, and Ignite, our analytics platform, to develop new credit solutions powered by twin indicators in verticals like mortgage and auto that only Equifax can deliver, which we expect will lead to share gains and growth for our USIS business. Exiting 2024 with close to 85% of Equifax revenue in our new cloud environment is a huge milestone for the team, so we can fully focus on growth. We are also at an important inflection point with our accelerating free cash flow and a strong balance sheet to position Equifax to return our substantial excess free cash flow to shareholders in 2025. We are entering the next chapter of Equifax with our cloud transformation substantially complete.

Speaker Change: We are using a single data fabric FX dot AI and ignite our analytics platform to develop new credit solutions powered by twin indicators in verticals like mortgage and auto it only equifax can deliver which we expect will lead to share gains and growth for our U S <unk> business.

Mark: We are using a single data fabric FX dot AI and ignite our analytics platform to develop new credit solutions powered by twin indicators in verticals like mortgage and auto it only equifax can deliver which we expect will lead to share gains and growth for our U S <unk> business.

Speaker Change: Existing 2024 with close to 85% of Equifax revenue in our new cloud environment is a huge milestone for the team. So we can fully focus on growth.

Mark: Exiting 2024 with close to 85% of Equifax revenue in our new cloud environment is a huge milestone for the team. So we can fully focus on growth.

Speaker Change: We are also at an important inflection point with our accelerating free cash flow and a strong balance sheet to position equifax to return our substantial excess free cash flow to shareholders in 2025.

Mark: Were also at an important inflection point with our accelerating free cash flow and a strong balance sheet to position equifax to return our substantial excess free cash flow to shareholders in 2025, we.

Speaker Change: We are entering the next chapter of Equifax with our cloud transformation substantially complete.

Mark: We are entering the next chapter of Equifax with our cloud transformation substantially complete.

Speaker Change: Energized by our momentum as we enter 2025, but even more energized about the future of the new Equifax and with that operator, let me open it up for questions.

Mark: Energized by our momentum as we enter 2025, but even more energized about the future of the new Equifax and with that operator, let me open it up for questions.

Mark Begor: I'm energized by our momentum as we enter 2025, but even more energized about the future of the new Equifax. And with that, operator, let me open it up for questions.

I'm energized by our momentum as we enter 2025, but even more energized about the future of the new Equifax. And with that, operator, let me open it up for questions.

Speaker Change: Thank you will.

Mark: Thank you we will now be conducting a question and answer session.

Speaker Change: Now be conducting a question and answer session if.

Operator: Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question, please press star one from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. In the interest of time to allow as many as possible to ask questions, we ask you, please limit yourself to one question and one follow up. Thank you. While we pause a moment poll for questions. Thank you. And our first question will be coming from the line of Jeff Meuler with Baird. Please receive your question.

Speaker Change: If you'd like to ask a question. Please press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue.

Mark: If you'd like to ask a question. Please press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue you.

Speaker Change: You May press star two if you'd like to remove yourself from the queue for participants using.

Mark: You May press star two if you'd like to remove yourself from the queue.

Mark: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: In the interest of time until that as many as possible to ask questions. We ask you. Please limit yourself to one question and one follow up.

Speaker Change: Thank you, while we pause a moment poll for questions.

Mark: Thank you, while we pause a moment poll for questions.

Speaker Change: Thank you and our first question will be coming from the line of Jeff Miller with Baird. Please proceed with your question.

Jeff Miller: Yes. Thank you good morning, so I'm trying to listen everything Youre, saying on AWS margin guidance, but it's still hard for me to reconcile margins contracting year over year on 7% Rev.

Jeff Miller: Yes, Thank you and good morning, so I'm trying to listen everything Youre, saying on AWS margin guidance, but it's still hard for me to reconcile margins contracted year over year on 7%.

Jeff Meuler: Yeah, thank you.

Jeff Meuler: Yeah, thank you. Good morning. I'm trying to listen to everything. You're saying on EWS margin guidance, but it's still hard for me to reconcile margins contracting year over year on 7% revenue growth. And I get that there's macro factors that are impacting volumes and there's a decremental margin associated with that. You also called out that there's onboarding cost for new partners, but I would think you've had that for a while, including last year. So, just any other factors and if you can specifically hit on what's going in terms of payout ratios for Twin Record Partners, both as you sign new and renew.

Mark Begor: Good morning.

John Gamble: I'm trying to listen to everything.

Mark Begor: You're saying on EWS margin guidance, but it's still hard for me to reconcile margins contracting year over year on 7% revenue growth. And I get that there's macro factors that are impacting volumes and there's a decremental margin associated with that. You also called out that there's onboarding cost for new partners, but I would.

Speaker Change: Revenue growth and I get that there is.

Speaker Change: Macro factors that are impacting volumes and theres, a decremental margin associated with that you also called out that there's onboarding costs for new partners, but I would think <unk> had that for a while including last year.

John Gamble: Think you've had that for a while, including last year.

Speaker Change: So just any other factors and if you can specifically hit on what's going on in terms of payout ratios for twin record partners, both as you signed new and renew.

Speaker Change: So just any other factors and if you can specifically hit on what's going on in terms of payout ratios for twin record partners, both as you sign new and renew.

Mark Begor: So, just any other factors and if.

John Gamble: You can specifically hit on what's going.

Mark Begor: In terms of payout ratios for Twin Record Partners, both as you.

Trevor Burns: Sign new and renew.

Speaker Change: Yes, Jeff I'll start and John can jump in I think you hit the factors impacting UWS and Equifax in 2025, clearly the mortgage market decline takes a lot of high calorie revenue out of the forecast as well as the same on the talent side Onboarding is larger now than it was in prior years.

Speaker Change: Yes, Jeff I'll start and John can jump in I think you hit the factors impacting AWS and Equifax in 2025, clearly the mortgage market decline takes a lot of high calorie revenue out of the forecast as well as the same on the talent side Onboarding is larger now than it was in prior years.

Mark Begor: Yeah, Jeff, I'll start and John can jump in. I think you hit the factors impacting EWS and Equifax in 2025. Clearly the mortgage market decline takes a lot of high calorie revenue out of the forecast as well. As is the same on the talent side, onboarding is larger now than it was in prior years. As you know, we added 20 million records last year, but we added 15 partners, including three in Q4. So we've had our highest record addition last year and our highest partner additions last year. So onboarding, we do expect to be larger in 2025, those onboarding costs, which of course will benefit us in the future, you know, moving forward. What else, John, would you add?

Speaker Change: As you know we added 20 million records last year, but we added 15 partners, including three in the fourth quarter. So we had our highest record addition last year and our highest partner additions last year. So onboarding, we do expect to be larger in 2025 of those on boarding costs, which of course will benefit us in the future.

Speaker Change: As you know we added 20 million records last year, but we added 15 partners, including three in the fourth quarter. So we've had our highest record addition last year and our highest partner additions last year. So onboarding, we do expect to be larger in 2025, those on boarding costs, which of course will benefit us in the future.

Speaker Change: Moving forward.

Speaker Change: John would you add so we have seen also a nice growth we talked about and insights we've seen nice growth in some education products and we want to continue to drive that growth, but those those products have lower variable margins and contribution margins. Obviously been twin that has very very high margin. So so that is pressuring margins to a degree and we're continuing to make substantial.

Speaker Change: John would you add so we have seen also a nice growth, we talked about and insights we've seen nice growth in some education products and.

John Gamble: Yes, so we have seen also nice growth. We talked about in Insights; we've seen nice growth in some education products, and we want to continue to drive that growth. But those products have lower variable margins and contribution margins, obviously, than Twin that has very, very high margins. So that is pressuring margins to a degree. And we're continuing to make substantial investments in EWS to drive future growth and deliver new products. And given the fact that revenue growth is a bit lower, that obviously is somewhat decremental to margin in the year. So overall, I think we still expect this to be a very strong margin business. We believe as the mortgage market and hiring recovers, we're going to, we're going to return to margin growth.

Speaker Change: And we want to continue to drive that growth, but those those products have lower variable margins and contribution margins. Obviously been twin that has very very high margin. So so that is pressuring margins to a degree and we're continuing to make substantial investments in AWS to drive future growth and deliver new products and given the fact that revenue growth is a bit lower that obviously.

Speaker Change: <unk> investments in AWS to drive future growth and deliver new products and given the fact that revenue growth is a bit lower that obviously is somewhat decremental margin in the year. So overall I think we still expect this to be a very strong margin business. We believe is the mortgage market and hiring recovers, we're going to we're going to return to margin growth.

Speaker Change: It's somewhat decremental margin in a year. So overall I think we still expect this to be a very strong margin business. We believe is the mortgage market and hiring recovers, we're going to we're going to return to margin growth.

Speaker Change: But the factors, we just talked about plus the headwinds of the difficult markets, resulting in the decline in 'twenty five.

Speaker Change: But the factors, we just talked about plus the headwinds of the difficult markets is what's resulting in the decline in 'twenty five.

John Gamble: But the factors we just talked about, plus the headwinds of the difficult markets is what's resulting in the decline in 2025.

But the factors we just talked about, plus the headwinds of the difficult markets is what's resulting in the decline in 2025.

Speaker Change: Okay, but just on the payout ratios that you're no change, yes, sorry, Jeff, Yes, sorry, I didn't cover that one no change there's no change in our payout ratios.

Speaker Change: Okay, but just on the payout ratios that you're no change yes.

Mark Begor: Okay, but just on the payout ratios that you're. No change. Yeah, sorry, Jeff. Yep, sorry, I didn't cover that one.

Mark Begor: Okay, but just on the payout ratios that you're.

Speaker Change: Alright, Jeff I'm, sorry, I didn't cover that one no change there is no change in our payout ratios.

John Gamble: No change. Yeah, sorry, Jeff. Yep, sorry, I didn't cover that one. No change.

John Gamble: No change.

Mark Begor: There's no change in our payout ratios. We extended; we have about 60 partners. I think there was a handful of those that extended last year. Same terms as in the past. No change in what our payouts are. We have attractive partnerships with a lot of partners. They get a lot of value out of it, and so do we. But we see no change in those payout ratios. That's not impacting our margins at all. Very helpful, thank you.

Speaker Change: Extended.

Speaker Change: We have about 60 partners I think there was a handful of those that extended last year same terms as in the past no change in what our payouts are we have.

Speaker Change: We have about 60 partners I think there was a handful of those that extended last year same terms is.

Speaker Change: In the past no change in what our payouts are we have a.

Speaker Change: Attractive partnerships with a lot of partners they get a lot of value out of it.

Speaker Change: Attractive partnerships with a lot of partners they get a lot of value out of it and so we but we see no change in those payout ratios, that's not impacting our margins at all.

Speaker Change: But we see no change in those payout ratios, that's not impacting our margins at all.

Speaker Change: Very helpful. Thank you.

Jeff Meuler: Very helpful, thank you.

Speaker Change: Thank you. Our next question is from the line of Manav Patnaik with Barclays. Please proceed with your question.

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

Manav Patnaik: Good morning.

Speaker Change: I just wanted to confirm Mike when you said.

Speaker Change: To confirm Mike when you said that the mortgage in hiring a headwind both of the 200 basis points higher I guess is that assuming that those markets would be flat and then I. Just wanted to know how you would quantify what the EPS impact of that would be.

John Gamble: Good morning.

Manav Patnaik: Good morning. I just wanted to confirm, Mark, when you said without the mortgage and hiring headwinds, growth would have been 200 basis points higher. I guess, is that assuming that those markets would be flat? And then I just wanted to know how you would quantify what the EPS impact of that would be.

Trevor Burns: I just wanted to confirm, Mark, when you said without the mortgage and hiring headwinds, growth would have been 200 basis points higher. I guess, is that assuming that those markets would be flat? And then I just wanted to know how you would quantify what the EPS impact of that would be.

Speaker Change: The mortgage and hiring a headwind both of the 200 basis points higher I guess is that assuming that those markets would be flat and then I. Just wanted to know how you would quantify what the EPS impact of that would be.

Manav Patnaik: Yes, Manav I think as you know back in October when we.

Speaker Change: Yes, Manav I think as you know back in October when we.

Mark Begor: Yeah, Manav, I think as you know, back in October when we talked about our third quarter earnings, we gave you some comments around what trends were at that time and rolled that forward to 2025. At that time we thought the mortgage market was going to be up about five points based on current trends. Obviously, the decline that happened in mid-December and is happening as we speak was surprising to us. Obviously 7% mortgage rates are high, but the decline was a lot sharper than we expected over the last six weeks. Really what we're comparing to is somewhere between that flat and up 5 when we think about the impact that it would have had.

Manav Patnaik: Talked about our third quarter earnings. We gave you some comments around what trends were at that time and roll that forward to 2025 at that time, we thought the mortgage market was going to be up about five points based on current trends.

Speaker Change: <unk> talked about our third quarter earnings. We gave you some comments around what trends were at that time and roll that forward to 2025 at that time, we thought the mortgage market was going to be up about five points based on current trends.

Manav Patnaik: And obviously the decline that happened in mid December and is happening as we speak was surprising to us obviously, 7% mortgage rates are high but the decline was a lot sharper than we expected over the last six weeks, so really what we're comparing to us somewhere between that flat and up 5% when we think.

Speaker Change: Obviously the decline that happened in mid December and is happening as we speak was surprising to us obviously, 7% mortgage rates are high but the decline was a lot sharper than we expected over the last six weeks, so really what we're comparing to us somewhere between that flat and up 5% when we think about.

Manav Patnaik: The impact that it would have had because as recently as two months ago. We were looking at 2025 being a slightly positive mortgage market environment and its not now from an EPS standpoint.

Speaker Change: The impact that it would have had because.

Speaker Change: As recently as two months ago, we were looking at 2025.

Mark Begor: Because as recently as two months ago, we were looking at 2025 being a slightly positive mortgage market environment, and it's not now. From an EPS standpoint, it's very high calories.

Because as recently as two months ago, we were looking at 2025 being a slightly positive mortgage market environment, and it's not now. From an EPS standpoint, it's very high calories.

Being a slightly positive mortgage market environment and its not now from an EPS standpoint.

Speaker Change: It's very high calories.

Manav Patnaik: Very high calories.

Speaker Change: Manav.

Manav Patnaik: Manav.

Speaker Change: When we calculate it.

Manav Patnaik: When we calculated the benefit to EPS, obviously, we just assumed recovery to a flat market.

John Gamble: Manav, when we calculated the benefit to EPS, obviously we just assumed recovery to a flat market. The growth rate recovery again is just really relative to a flat market. And we just used the variable margins that we would have on those products. And so we assumed both for mortgage USIS and Twin inquiries would go to flat, and then we just assumed the hiring market as opposed to being down.

Speaker Change: Benefit to EPS, obviously, we just assumed recovery to a flat market.

Speaker Change: The.

Manav Patnaik: The growth rate recovery again, it's just really relative to a flat market and we just use the variable margins that we would have on those products and so so we assumed.

Speaker Change: The growth rate recovery again, it's just really relative to a flat market and we just use the variable margins that we would have on those products and so so we assumed both.

Manav Patnaik: Both.

Speaker Change: <unk>.

Manav Patnaik: For mortgage USAF and twin inquiries would go to flat and then we just assumed the hiring market as opposed to being down eight would be flat and we flow through of variable margins.

Speaker Change: For mortgage USAF and twin inquiries would go to flat and then we just assumed the hiring market as opposed to being down eight would be flat and we flowed through a variable margins.

Mark Begor: Eight would be flat.

Mark Begor: Eight would be flat and we flowed through variable margins.

John Gamble: We flowed through variable margins.

Speaker Change: Okay got it and then maybe just on the government side, Mike just help us with that cadence again in terms of what's going on there and are you seeing any.

Trevor Burns: Okay, got it. And then maybe just on the government side, Mark, just help us with that cadence again in terms of, you know, what's going on there and are you seeing any early impacts from DOGE and all that stuff that's been thrown out there?

Manav Patnaik: Okay, got it. And then maybe just on the government side, Mark, just help us with that cadence again in terms of, you know, what's going on there and are you seeing any early impacts from DOGE and all that stuff that's been thrown out there?

Speaker Change: The impacts on village and all that stuff, that's being thrown out there.

Speaker Change: The impacts on <unk>, and all that stuff, that's being thrown out there.

Speaker Change: Yeah, Yeah. So I think you're focused on maybe maybe the fourth quarter and 2025.

Speaker Change: Yeah. So I think you're focused on maybe maybe the fourth quarter and 2025.

Mark Begor: Yeah. So I think you're focused on maybe the fourth quarter end 2025. We have been performing exceptionally well as you know, with very high growth rates. So you're getting into some hard comps in the fourth quarter and then in 2025, including in the first quarter. We did mention that CMS in particular made a change in the reimbursement program with the states where they used to reimburse, that CMS reimbursed 100% of data costs. They're now at 75%. So the states have to pay 25%. That had some impact in the fourth and you know, likely in the first as states are adjusting to that. As you know, states have budgets and if they're going to start paying for some of that data cost themselves, they've got to adjust their budgeting and their operating statements.

Speaker Change: We have been performing exceptionally well as you know with very high growth rates, So youre getting into some hard comps in the fourth quarter and then into 2025, including in the first quarter we.

Speaker Change: We did mentioned that CMS in particular made a change in the reimbursement program with the states, where they used to reimburse that CMS.

Speaker Change: We did mentioned that.

Speaker Change: CMS in particular made a change in the reimbursement program with the states, where they used to reimburse that CMS.

Speaker Change: Reimbursed, 100% of data costs. They are now at 75% of the states have to pay 25%.

Speaker Change: Reimbursed, 100% of data costs. They are now at 75% of the states have to pay 25 that had some impact in the fourth and likely in the first as states are adjusting to that as you know states have budgets.

Speaker Change: That had some impact in the fourth and likely in the first as states are adjusting to that as you know states have budgets.

Speaker Change: And if they're going to start paying for some of that data cost themselves they've got to adjust their budgeting and.

Speaker Change: And if they're going to start paying for some of that data costs themselves they've got to adjust their budgeting and.

Speaker Change: They are operating statements and we're focused on working with the states to in some cases going direct to them with our solutions.

Speaker Change: They're operating statements and we're focused on working with the states to in some cases going direct to them with our solutions.

Mark Begor: And we're focused on working with the states to, in some cases, going direct to them with our solutions that, you know, have some impact in the first half of the year. You know, on our government business. As John said, we expect the government business to return to double-digit growth in the second half. You may remember we signed a large contract extension with SSA in September last year. That really comes into effect in 2025. So that'll have a positive impact, particularly in the second half. And then our contracts have pricing escalators that aren't uniform on when they go into effect during the year. But we have some larger government contracts that have escalators that are positively impacting the second half. So that's another good guy as we get into the year. Anything else, John?

And we're focused on working with the states to, in some cases, going direct to them with our solutions that, you know, have some impact in the first half of the year. You know, on our government business. As John said, we expect the government business to return to double-digit growth in the second half. You may remember we signed a large contract extension with SSA in September last year. That really comes into effect in 2025. So that'll have a positive impact, particularly in the second half. And then our contracts have pricing escalators that aren't uniform on when they go into effect during the year. But we have some larger government contracts that have escalators that are positively impacting the second half. So that's another good guy as we get into the year. Anything else, John?

Speaker Change: It will have some impact in the first half of the year.

Speaker Change: Have some impact in the first half of the year.

Speaker Change: Our government business as John said, we expect the government business to return to double digit growth in the second half you may remember we signed a.

Speaker Change: Our government business as John said, we expect the government business to return to double digit growth in the second half you may remember, we signed a lease.

Speaker Change: Large contract extension with SSA in September last year that really comes into effect in 2025, So that'll have a positive impact, particularly in the second half and then our contracts.

Speaker Change: A large contract extension with SSA in September last year that really comes into effect in 2025, So that'll have a positive impact, particularly in the second half and then our contracts.

Speaker Change: Have pricing escalators that arent uniform on when they go into effect during the year, but we have.

Some larger Gov.

Speaker Change: Some larger.

Speaker Change: Government contracts that have escalators that are positively impacting the second half. So that's another good guy as we get into the year anything else John Thanks for the first half and Mark mentioned that we're still we're still dealing with the fact that they were redetermination in the first quarter of last year and part of the second quarter. So revenue was very strong in the first quarter of 2024 and moving into the second quarter.

Speaker Change: Government contracts that have escalators that are positively impacting the second half. So that's another good guy as we get into the year anything else John Thanks for the first half and Mark mentioned that we're still we're still dealing with the fact that there were redetermination in the first quarter of last year and part of the second quarter. So revenue was very strong in the first quarter of 2024 and moving into the second.

John Gamble: Thanks. In the first half, and Mark mentioned it, we're still dealing with the fact that there were redeterminations in Q1 of last year and part of the second. So revenue was very strong in Q1 2024 and moving into Q2 2024.

Speaker Change: In 2024.

Speaker Change: Quarter of 2024.

Speaker Change: Okay. Thank you.

Speaker Change: And then thinking.

Speaker Change: Okay.

Trevor Burns: Okay, thank you.

Manav Patnaik: Okay, thank you.

Our next question is from the line of Andrew Steinman with J P. Morgan. Please proceed with your questions Hi, two quick ones on mortgage. The first one is John could you just tell us what mortgage revenues were as a percentage of fourth quarter revenues in the second one is just to make sure we get a definition of U S Hot.

Speaker Change: Our next question is from the line of Andrew Steinman with Jpmorgan. Please proceed with your question Hi.

Operator: Our next questions are from the line of Andrew Steinerman with JPMorgan. Please proceed with your questions.

Speaker Change: Two quick ones on mortgage the first one is John could you just tell us what mortgage revenues were as a percentage of fourth quarter revenues in the second one is just to make sure we get our definition of U S. Hot mortgage credit increase which equifax has been seeding sitting down for the last six weeks is just data.

Trevor Burns: Hi, two quick ones on mortgage. The first one is John, could you just tell us what mortgage revenues were as a percentage of fourth quarter revenues? And the second one is just to make sure we get a definition of US hard mortgage credit inquiries which Equifax has been seeing, you know, seeing down.

Andrew Steinerman: Hi, two quick ones on mortgage. The first one is John, could you just tell us what mortgage revenues were as a percentage of fourth quarter revenues? And the second one is just to make sure we get a definition of US hard mortgage credit inquiries which Equifax has been seeing, you know, seeing down the last six weeks. As just stated, that's a difference from what the MBA has reported on their mortgage weekly application reports. I just wanted to know if maybe you're measuring different things hard versus soft I'm not sure really.

Speaker Change: Mortgage credit.

Speaker Change: Greece, which equifax has been seeding sitting down for the last six weeks has just stated.

Speaker Change: That's a difference from what the MBA has reported on their mortgage weekly application.

Operator: The last six weeks.

Speaker Change: That's a difference from what the MBA has reported on their mortgage weekly application reports and I just wanted to know if maybe you're measuring different things hard versus soft I'm not sure really.

Trevor Burns: As just stated, that's a difference from what the MBA has reported on their mortgage weekly application reports. I just wanted to know if maybe you're measuring different things hard versus soft.

Speaker Change: And I just wanted to know if maybe you're measuring different things hard versus soft I'm not sure really.

Speaker Change: So $4 24 was 17, 7%.

Mark Begor: I'm not sure really.

John Gamble: Q4 2024 was 17.7%. You know this, Andrew. We've been disclosing hard inquiries, the inquiries that actually impact your credit file, for 10 plus years.

Speaker Change: And and and and you know this is Andrew we've been we've been disclosing hard inquiries the inquiries that actually impact your credit file.

Speaker Change: And we and you know this Andrew we've been we've been disclosing hard inquiries the inquiries that actually impact your credit file.

Speaker Change: For 10, plus years right and so we consistently disclosed that number.

Andrew Steinman: For 10, plus years right and so we consistently disclosed that number.

Mark Begor: Right.

John Gamble: We consistently disclose that number. It doesn't include soft inquiries.

Speaker Change: It doesn't include soft inquiries right, so a pre qual, our pre approval product.

Andrew Steinman: It doesn't include soft inquiries right, so a pre qual, our pre approval product.

Mark Begor: Right.

John Gamble: So, a pre-qual or a pre-approval product. And we focus on hard inquiries because that's what's in the tri-merge. That's what's required to be purchased to close a loan. And we think that probably has the highest level of correlation over time, over time with originations.

Speaker Change: And we focus on hard inquiries because that's what's in the Tri merge that's what's required to be purchased to close alone and we think that probably has the highest level of correlation over time.

Andrew Steinman: But and we focus on hard inquiries because that's what's in the Tri merge that's what's required to be purchased to close alone and we think that probably has the highest level of correlation over time.

Speaker Change: Overtime with originations right and we've taken a look at originations historically and we have good origination data and the credit file through think about early 2024.

Andrew Steinman: Overtime with originations right and we've taken a look at originations historically and we have good origination data and the credit file through think about early 2024.

Mark Begor: Right.

John Gamble: We've taken a look at, you know, originations. Historically we have good origination data in the credit file through, you know, think about early 2024. That time period relative to the 15 to 19 average is down something on the order of 45%. And if you look at hard inquiries in that same time period, we're down not quite 50%. So the correlation seems quite good, and that's why we continue to disclose that number specifically.

Speaker Change: That time period relative to the 15% to 19 averages down something something on the order of 45% and if you look at hard inquiries in.

Andrew Steinman: That time period relative to the 15% to 19 averages down something something on the order of 45% and if you look at heart inquiries in.

Speaker Change: In that same time period were down not quite 50%. So the correlation seems quite good and Thats why we continue to disclose that number specifically.

Andrew Steinman: In that same time period were down not quite 50%. So the correlation seems quite good and Thats why we continue to disclose that number specifically.

Speaker Change: Okay. Thank you.

Trevor Burns: Okay, thank you.

Andrew Steinerman: Okay, thank you.

Speaker Change: Thank you. Our next question is from the line of Toni Kaplan with Morgan Stanley. Please proceed with your questions.

Operator: Thank you. Our next question is from the line of Toni Kaplan with Morgan Stanley. Please proceed with your questions.

Toni Kaplan: Thanks, So much maybe first on just USAA as 2% non mortgage growth versus last quarter.

Toni Kaplan: Thanks, So much maybe first on just USAA as 2% non mortgage growth versus last quarter of size.

Toni Kaplan: Thanks so much. Maybe first on just USIS 2% non-mortgage growth versus last quarter of up 5%. Just wanted to hear about any sort of changes in the selling environment or just any factors you wanted to share on sort of the overall broad market conditions that you're seeing. And obviously you've mentioned mortgage and hiring, but anything outside of those two would be helpful.

Speaker Change: Five.

Speaker Change: Wanted to hear about any sort of changes in the selling environment or <unk>.

Toni Kaplan: Wanted to hear about any sort of changes in the selling environment or <unk>.

Speaker Change: Just any factors Elon I just share on the overall.

Toni Kaplan: Just any factors you wanted to share on the overall.

Speaker Change: Market conditions that you're seeing and obviously you mentioned the mortgage in hiring but anything outside of those two that would be helpful.

Toni Kaplan: Market conditions that you're seeing and obviously you mentioned mortgage in hiring but anything outside of those two that would be helpful.

Speaker Change: Generally speaking I think what we indicated we thought auto performed relatively well in the fourth quarter. We thought phy also low single digits right performed relatively well I think the biggest difference that you saw right was that Fms in the third quarter was up double digits.

Toni Kaplan: Generally speaking I think what we indicated we thought auto performed relatively well in the fourth quarter. We thought <unk> also low single digits right performed relatively well I think the biggest difference that you saw right was that Fms in the third quarter. It was up double digits.

John Gamble: No, generally speaking, I think what we indicated is we thought Auto performed relatively well right in the fourth quarter. We thought FI also low single digits.

Mark Begor: Right.

John Gamble: Performed relatively well. I think the biggest difference that you saw.

Mark Begor: Right.

John Gamble: Was that FMS in Q3 was up double digits. The team did a great job selling into some new customers in Q3, which drove FMS very strong. We talked about the fact that we built some outstanding new relationships in the payment industry. Some of that really drove really good growth in our FMS or batch business. So that was probably the biggest difference between what was delivered in Q3.

Speaker Change: <unk> did a great job selling into some new customers in the third quarter, which drove Fms very strong we talked about the fact that we built some some outstanding new relationships in the payment industry. Some of that really drove really good growth in our <unk>.

Toni Kaplan: Team did a great job selling into some new customers in the third quarter, which drove Fms very strong we talked about the fact that we built some some outstanding new relationships in the payment industry. Some of that really drove really good growth in our.

Speaker Change: <unk> batch business.

Toni Kaplan: Fms for batch business.

Speaker Change: So that was probably the biggest difference between what was delivered in the third quarter and the fourth quarter, but in terms of online.

Toni Kaplan: So that was probably the biggest difference between what was delivered in the third quarter and the fourth quarter, but in terms of online.

Mark Begor: Quarter and the fourth quarter.

Speaker Change: I think we feel like auto performed relatively well again low single digits low single digits D to C. Actually came back to growth for the first time in quite some time and we actually saw a little bit performance in insurance. So so I'd say the online performance relatively consistent the big difference was Fms.

Speaker Change: I think we feel like auto performed relatively well again low single digits low single digits I'm D to C actually came back to growth for the first time in quite some time and we actually saw a little bit of performance on insurance. So so I would say the online performance relatively consistent the big difference was Fms.

John Gamble: But in terms of online, I think we feel like auto performed relatively well. Again, low single digits, FI, low single digits, D2C actually came back to growth for the first time in quite some time. And we actually saw a little bit of performance in insurance. So I'd say the online performance relatively consistent. The big difference was FMS.

Speaker Change: Great and then on my follow up I did want to ask about the government opportunity I know you spoke a lot about the trajectory. So thank you for giving that.

Toni Kaplan: Great. And then on my follow-up, I did want to ask about the government opportunity. I know you spoke a lot about the trajectory, so thank you for giving that. Just more in general, when you think about government programs, I feel like you had some success with CMS and SSA, but I guess has the government sort of rethinking their programs and you can provide some efficiency to them. How are you thinking about the opportunity for basically getting new programs, but offset by the point that potentially there could be a lot of programs that are cut? So just how do you sell into that environment? How are you thinking about the change in opportunity just more broadly? Thanks.

Speaker Change: Just more in general when you think about.

Speaker Change: Government programs I felt like you had some success with.

Speaker Change: Government programs. It sounds like you had some success with.

Speaker Change: CMS and as I say, but I guess, how is the government sort of rethinking.

Speaker Change: CMS and SSA, but I guess has the government sort of rethinking that.

Speaker Change: There are programs.

Speaker Change: And you can provide.

And you can provide.

Speaker Change: Some efficiency to them.

Speaker Change: What are you thinking about the opportunity for <unk>.

Speaker Change: Are you thinking about the opportunity for <unk>.

Speaker Change: Like basically getting new programs, and but offset by the point that potentially there could be a lot of programs that are cut. So just how do you how do you sell into that environment. How are you thinking about the change in opportunity.

Like basically getting new programs, and but offset by the point that potentially there could be a lot of programs that are cut. So just how do you how do you sell into that environment. How are you thinking about the change in opportunity.

Operator: For.

Toni Kaplan: Basically getting new programs, but offset by the point that potentially there could be a lot of programs that are cut? So just how do you sell into that environment? How are you thinking about the change in opportunity just more broadly?

Speaker Change: More broadly thanks.

Toni Kaplan: Yes, it's a great question, Tony we still think there is a big market opportunity and in this administration.

Speaker Change: Yes, it's a great question, Tony we still think there's a big market opportunity and in this administration.

Operator: Thanks.

Mark Begor: Yeah, it's a great question, Tony. We still think there's a big market opportunity in this administration, you know, even more focus around delivering social services accurately, you know, to those in need, and focusing on where there's improper payments or abuse in the system, which really means people that are receiving benefits that perhaps don't qualify. And I think we've all read and seen all the studies that says there's quite a bit of that. Our view is, and I suspect it's yours too, is that broadly social services aren't going to be cut. You know, there will be a focus, and there is. We see a focus in Washington, and we're working both on the Hill and also, you know, on the, towards the White House around how our programs can really help in the delivery of social services accurately.

Mark Begor: Yeah, it's a great question, Toni. We still think there's a big market opportunity in this administration, you know, even more focus around delivering social services accurately, you know, to those in need, and focusing on where there's improper payments or abuse in the system, which really means people that are receiving benefits that perhaps don't qualify. And I think we've all read and seen all the studies that says there's quite a bit of that. Our view is, and I suspect it's yours too, is that broadly social services aren't going to be cut. You know, there will be a focus, and there is. We see a focus in Washington, and we're working both on the Hill and also, you know, on the, towards the White House around how our programs can really help in the delivery of social services accurately.

Toni Kaplan: Even more focus around delivering social services accurately to those in need and you're focusing on where there is improper payments or abuse in the system, which really means people that are receiving benefits that perhaps don't qualify and I think we've all read and seen all the studies that says theres quite a bit of that our view is and I suspect it to you.

Speaker Change: Even more focus around delivering social services accurately to those in need and you're focusing on where there is improper payments or abuse of the system, which really means people that are receiving benefits that perhaps don't qualify and I think we've all read and seen all of the studies that says theres quite a bit of that our view is and I suspected.

Toni Kaplan: <unk> two is the broadly social services aren't going to be cut.

Speaker Change: <unk> two is that broadly social services aren't going to be cut.

Toni Kaplan: There will be a focus in there is we see a focus in Washington, and we're working both on the Hill and also on the torque towards the White house around how our programs can really help in the delivery of social services accurately. So that's we think a positive macro for equifax.

Speaker Change: There will be a focus in there is we see a focus in Washington, and we are working both on the Hill and also on the torque towards the White house around how our programs can really help in the delivery of social services accurately. So that's we think a positive macro for equifax.

Mark Begor: So that's, we think, a positive macro for Equifax. You know, I know you know, the TAM for US is about $5 billion of manual verifications that are done in the government space. And again, it's done at the state level. We have penetration in a lot of states, but a lot of states are fully manual. And as you know, a state is not typically a customer; it's the agencies within a state. So we've got a large commercial team. We're out there selling the productivity from using our solution, the accuracy and speed from using our solution. And again, the big macro I think, a positive for us in 2025, is broadly there's been a bigger focus in Washington around accuracy, which we think plays well to our data, which is verified. So we remain very bullish on the future of our government business.

So that's, we think, a positive macro for Equifax. You know, I know you know, the TAM for US is about $5 billion of manual verifications that are done in the government space. And again, it's done at the state level. We have penetration in a lot of states, but a lot of states are fully manual. And as you know, a state is not typically a customer; it's the agencies within a state. So we've got a large commercial team. We're out there selling the productivity from using our solution, the accuracy and speed from using our solution. And again, the big macro I think, a positive for us in 2025, is broadly there's been a bigger focus in Washington around accuracy, which we think plays well to our data, which is verified. So we remain very bullish on the future of our government business.

Toni Kaplan: You know the Tam for us is about.

Speaker Change: You know the Tam for us is about.

Toni Kaplan: About $5 billion of manual Verifications that are done in the in the government space and again, it's done at the state level.

Speaker Change: About $5 billion of manual Verifications that are done in the in the government space and again it is done at the state level.

Toni Kaplan: Have penetration in a lot of states, but a lot of states are fully manual and as you know a state that is not typically a customer it's the agencies within the state. So we've got a large commercial team we're out there selling the productivity from using our solution the accuracy and speed from using our solution and again, the big macro I think a positive.

Speaker Change: Have penetration in a lot of states, but a lot of states are fully manual and as you know a state that is not typically a customer it's the agencies within the state. So we've got a large commercial team we're out there selling the productivity from using our solution the accuracy and speed from using our solution and again, the big macro I think a positive.

Toni Kaplan: For us in 2025 is broadly theres been a bigger focus in Washington around the accuracy, which we think plays well to our data which is verified so.

Speaker Change: For us in 2025 is broadly there has been a bigger focus in.

Speaker Change: In Washington around accuracy, which we think plays well to our data which is verified.

Speaker Change: We remain very bullish on the.

Toni Kaplan: We remain very bullish on the future of our government business in that big $5 billion Tam, we exited the year at roughly $700 million. So we've got a lot of opportunity and a battleground for us or the opportunity is really at the state level into the agencies. So that's why we've got.

Speaker Change: The future of our government business in that big $5 billion Tam.

Mark Begor: That big $5 billion TAM, we exited the year at roughly $700 million. So we've got a lot of opportunity, and the battleground for us or the opportunity is really at the state level and the agencies. So that's why we've got Equifax resources deployed in the state capitals to really work on these programs. So we remain very optimistic around government in the future.

That big $5 billion TAM, we exited the year at roughly $700 million. So we've got a lot of opportunity, and the battleground for us or the opportunity is really at the state level and the agencies. So that's why we've got Equifax resources deployed in the state capitals to really work on these programs. So we remain very optimistic around government in the future.

Speaker Change: The year at roughly $700 million. So we've got a lot of opportunity in the battleground for us or the opportunity is really at the state level into the agency. So that's why we've got.

Toni Kaplan: Equifax resources deployed in the state capitals to really work on these programs. So we remain very optimistic around the government in the future.

Speaker Change: <unk> resources deployed in the state capitals to really work on these programs. So we remained very optimistic around the government in the future.

Toni Kaplan: Super Thanks.

Speaker Change: Alright. Thanks.

Speaker Change: Yeah.

Toni Kaplan: Super, thanks.

Speaker Change: Our next questions are from the line of Faiza <unk> with Deutsche Bank. Please proceed with your question.

Operator: Our next questions are from the line of Faiza Alwy with Deutsche Bank. Please receive your questions.

Faiza: Yeah, Hi, Thank you so I wanted to follow up on the on the pre core products and the software I think you mentioned that 70% off.

Faiza: Yes, hi, Thank you so I wanted to follow up on the on the pre core products and the soft growth I think you mentioned that 70% off.

Faiza Alwy: Yes, hi.

Faiza Alwy: Yes, hi. Thank you. So I wanted to follow up on the pre-qual products and the soft pulls. I think you mentioned that 70% of maybe the inquiries or the revenues are hard pulls. So just wanted to clarify, if that's what you meant, that 30% are soft pulls and 70% are hard credit pulls. So I'm curious what you're expecting in terms of the penetration of pre-qual products and if you're seeing any share shifts there, whether lenders are using one or two bureaus. And how are you in the initial shopping process and how do you expect that to play out in 2025?

Toni Kaplan: Thank you.

Faiza Alwy: So I wanted to follow up on the pre-qual products and the soft pulls. I think you mentioned that 70% of maybe the inquiries or the revenues are hard pulls. So just wanted to clarify, if that's what you meant, that 30% are soft pulls and 70% are hard credit pulls. So I'm curious what you're expecting in terms of the penetration of pre-qual products and if you're seeing any share shifts there, whether lenders are using one or two bureaus. And how are you in the initial shopping process and how do you expect that to play out in 2025?

Faiza: Maybe the inquiries are the revenues are hardcore. So just wanted to clarify is that for two months at 30%, our softballs and 70% are hard credit for so.

Faiza: Maybe the inquiries are the revenues are hardcoded. So just wanted to clarify if that's what you meant that 30% are thoughtful and 70% are hard credit for so.

Speaker Change: Curious what youre expecting in terms of the penetration of pre quote products and if you're seeing any share shift.

Speaker Change: Curious what you are expecting in terms of the penetration of pre quote products and if you're seeing any share shift.

Faiza: Other members are using one or two bureaus.

Faiza: The initial shopping process and how do you expect that to play out.

Faiza: And in 'twenty five.

Faiza: Yes.

Faiza: It started playing out in 2020 for your metrics are pretty close that there is a large shopping element or soft whole element of mortgage.

It started playing out in 2020 for your metrics are pretty close that theres, a large shopping element or soft whole element of mortgage.

Mark Begor: Yeah, it started playing out in 2024. Your metrics are pretty close that there's a large shopping element or soft pull element of mortgage. That was a real tailwind for us following, you know, COVID, when rates started to increase, people were shopping around further. We have seen some decrease in shopping, you know, really as a part of what we've seen in the last, you know, call it two months or six to eight weeks as rates went higher. People, you know, those that are shopping are still shopping, but there's less people shopping, meaning, you know, thinking about a mortgage, there's been a change in consumer confidence. The other changes that we've seen happening is there's some moves by mortgage originators who historically might pull all three in the shopping process.

Faiza: That was.

Faiza: A real tailwind for us following.

Faiza: Covid when rates started to increase people were shopping around further we have seen some decrease in shopping really as a part of the what we've seen in the last call. It two months or six to eight weeks.

Faiza: As rates went higher people.

Faiza: Those that are shopping are still shopping, but theres less people shopping.

Faiza: Thinking about our mortgage theres been a change in consumer confidence the other changes that we've seen happening is there some moves by mortgage originators, who historically might pull of all three in the shopping process. Some originators are either pulling one or two credit files instead of the full III, which obviously has an impact on our revenue.

Faiza: Thinking about our mortgage so there's been a change in consumer confidence the other changes that we've seen happening is there some moves by mortgage originators, who historically might pull all three in the shopping process. Some originators are either pulling one or two credit files instead of the full three which obviously has an impact on our revenue.

Mark Begor: Some originators are either pulling one or two credit files instead of the full three, which obviously has an impact on our revenue. Our focus there is obviously to be responsive commercially, but more importantly is a big focus around our differentiated data. And I talked about, we're rolling out as we speak, call it a shopping credit file for mortgage that has twin indicators on it, twin data that makes our shopping file more valuable to the mortgage originator because we want to differentiate between our competitors in that one and 2B world. In the shopping side, you may remember we also have NC attributes that we're including with our mortgage credit file that also differentiates our mortgage credit file and that shopping process.

Some originators are either pulling one or two credit files instead of the full three, which obviously has an impact on our revenue. Our focus there is obviously to be responsive commercially, but more importantly is a big focus around our differentiated data. And I talked about, we're rolling out as we speak, call it a shopping credit file for mortgage that has twin indicators on it, twin data that makes our shopping file more valuable to the mortgage originator because we want to differentiate between our competitors in that one and 2B world. In the shopping side, you may remember we also have NC attributes that we're including with our mortgage credit file that also differentiates our mortgage credit file and that shopping process.

Faiza: Our focus there is obviously to be a risk.

Faiza: Our focus there is obviously to be.

Faiza: Sponsored commercially but more importantly is a big focus around our differentiated data and I talked about we're rolling out as we speak.

Faiza: Call It a shopping credit file for mortgage it has twin indicators on a twin data. It makes our shopping file more valuable to the mortgage originator because we want to differentiate between our competitors and that one in <unk> world in the shopping side you May remember we also.

Faiza: Have NC plus attributes that we're including with our mortgage credit file that also differentiates our mortgage credit file in that shopping process and unrelated to mortgage we're doing the same thing as I mentioned in auto will be rolling out in the first half of this year a twin indicator on our auto credit file for the same reason and.

Mark Begor: And unrelated to mortgage, we're doing the same thing as I mentioned in auto. We'll be rolling out in the first half of this year a twin indicator on our auto credit file for the same reason. And obviously what we want to do is provide incremental value with the twin data on our credit file for both mortgage and auto, but still capture the twin full pulls which are required for mortgage and are required for auto that happen later in the process. So it's I think a really attractive advantage for Equifax to compete in both spaces with our differentiated data that really only we have. Only Equifax can put those twin indicators on our mortgage and credit file.

And unrelated to mortgage, we're doing the same thing as I mentioned in auto. We'll be rolling out in the first half of this year a twin indicator on our auto credit file for the same reason. And obviously what we want to do is provide incremental value with the twin data on our credit file for both mortgage and auto, but still capture the twin full pulls which are required for mortgage and are required for auto that happen later in the process. So it's I think a really attractive advantage for Equifax to compete in both spaces with our differentiated data that really only we have. Only Equifax can put those twin indicators on our mortgage and credit file.

Faiza: What we want to do is provide incremental value with the twin data on our credit file for both mortgage and auto but still capture the twin full poles.

Faiza: Which are required for mortgage and are required for auto. It happened later in the process. So it's a.

Faiza: Which are required for mortgage and are required for auto. It happened later in the process. So it's it's I think a really attractive advantage for equifax to compete in both spaces with our differentiated data that really only we have the only equifax can put those twin Eddie between indicators on our mortgage and credit fall.

Faiza: I think a really attractive advantage for equifax to compete in both spaces with our differentiated data that really only we have the only equifax can put those twin Eddie between indicators on our mortgage and credit fall and just in terms of the numbers right. So we were quoting revenue right. So it's something over 70% of revenue.

Faiza: And just in terms of the numbers right. So we were quoting revenue right. So it's something over 70% of revenue is hard bowls and then in addition to soft pulls there say high single digit percentage of.

John Gamble: Just in terms of the numbers. Right, so we were quoting revenue.

Mark Begor: Right.

John Gamble: So it's something over 70% of revenue is hard pulls. And then in addition to soft pulls, there's a high single digit percentage of batch job, UDM, property data, rental data, etc. That wouldn't be a soft pull. Right. So when you break down our mortgage revenue, it's something over 70% hard pulls, high single digit percentages, that is the other things that I just referenced. And the remainder would be soft inquiries.

His heart Bowls and then in addition to soft pulls there say high single digit percentage of.

Faiza: Batch job <unk> property data rental data et cetera that wouldn't be a softball, right. So when you break down our mortgage revenue. It's something over 70 is hard pulls but high single digit percentages that is the other things that I just referenced and the remainder would be would be soft inquiries.

Faiza: Batch job <unk> property data rental data et cetera that wouldn't be a softball, right. So when you break down our mortgage revenue, it's something over 70 art bowls, but high single digit percentages that is the other things that I just referenced and the remainder would be would be soft inquiries.

Speaker Change: Got it. Thank you and then just as a follow up apologies if I missed this but any thoughts on twin inquiries for 25 and outperformance I know we saw some improvement in the fourth quarter on on both of those metrics. So curious how you're thinking about that.

Speaker Change: Got it. Thank you and then just as a follow up.

Faiza Alwy: Got it, thank you. Then just as a follow up, apologies if I missed this, but any thoughts on twin inquiries for 25 and outperformance? I know we saw some improvement in the fourth quarter on both of those metrics. So, curious how you're thinking about that.

Speaker Change: So if I missed this but any thoughts on twin inquiries for 25 and outperformance I know we saw some improvement in the fourth quarter on on both of those metrics. So curious how youre thinking about that.

Faiza: Yes, just in general right.

Speaker Change: Yes, just in general right.

John Gamble: Yes, just in general. Right. We're expecting twin inquiries probably to be a little better than mortgage inquiries in 2025 just for the shopping reasons Mark referenced, and I'm talking about hard inquiries, but really no more specificity.

Faiza: <unk> twin inquiries, probably to be a little better than mortgage inquiries in 2025, just for the shopping reasons, Mark referenced and I'm talking about hard inquiries, but but.

Speaker Change: Expecting twin inquiries, probably to be a little better than mortgage inquiries in 2025, just for the shopping reasons, Mark referenced and I'm talking about hard inquiries, but.

Faiza: Really no more no more specificity than that.

Speaker Change: But really no more no more specificity than that.

Faiza: Alright, thank you.

Alright, thank you.

Trevor Burns: Than that.

Faiza Alwy: All right, thank you.

Speaker Change: Our next question is from the line of Kyle Peterson with Needham. Please proceed with your question.

Operator: Our next question is from the line of Kyle Peterson with Needham. Please proceed with your questions. Great.

Operator: Our next question is from the line of Kyle Peterson with Needham. Please proceed with your questions.

Faiza: Great.

Speaker Change: Great. Good morning, and thank you for taking the question.

Kyle Peterson: Great. Good morning, and thank you for taking the question. Just one for me, wanted to focus on capital allocation. Obviously the leverage and balance sheets in a pretty good spot. You guys are kind of hinting at both increasing the dividend and starting a buyback. How are you guys thinking about balancing and priorities between the two as well as potential timing as to when we could see some of these actions? As in like, is it middle of the year, late in the year? How should we think about that?

Speaker Change: And thank you for taking the question.

Mark Begor: Good morning, and thank you for taking the question. Just one for me, wanted to focus on capital allocation. Obviously the leverage and balance sheets in a pretty good spot. You guys are kind of hinting at both increasing the dividend and starting a buyback. How are you guys thinking about balancing and priorities between the two as well as potential timing as to when we could see some of these actions? As in like, is it middle of the year, late in the year? How should we think about that? Yes, I think we tried to be more than hinting, and we've been doing that for quite some time. As you know, it's been a goal of ours to complete the cloud transformation where we invested quite a bit of CapEx into moving us to the cloud native mode.

Speaker Change: Just one from me wanted to focus on capital allocation obviously the.

Speaker Change: Leverage and balance sheets in a pretty good spot you guys are kind of hinting at.

Speaker Change: Increasing the dividend and starting the buyback how are you guys thinking about balancing and priorities between the two as well as potential timing as to when we could see some of these actions.

Speaker Change: Increasing the dividend in starting the buyback how are you guys thinking about.

Speaker Change: Balancing and priorities between the two as well as potential timing as to when we could see some of these actions.

Speaker Change:

Speaker Change: And Mike is it middle of the year late in the air how should how should we think about that.

Speaker Change: And Mike is it middle of the year late in the air.

Speaker Change: Should we think about that.

Mike: Yes, I think we tried to be more than hinting and we've we've been doing that for quite some time.

Speaker Change: Yes, I think we tried to be more than hinting and we've we've been doing that for quite some time.

Mark Begor: Yes, I think we tried to be more than hinting, and we've been doing that for quite some time. As you know, it's been a goal of ours to complete the cloud transformation where we invested quite a bit of CapEx into moving us to the cloud native mode. And then when that CapEx coming down in our margin expansion and the savings from that really generated a lot of excess free cash flow. So we checked that box at close to 85% in the cloud. That's complete.

Mike: As you know it's been a goal of ours to complete the cloud transformation, where we invested quite a bit of capex into moving us to the cloud native mode.

Speaker Change: As you know it's been a goal of ours to complete the cloud transformation, where we invested quite a bit of capex into moving us to the cloud native mode.

Mike: And then when that Capex coming down is in our margin expansion in the savings from that really generating a lot of excess free cash flow. So we checked that box at close to 85% in the cloud.

Speaker Change: And then when that Capex coming down is in our margin expansion in the savings from that really generating a lot of excess free cash flow. So we checked that box at close to 85% in the cloud.

Mark Begor: And then when that CapEx coming down in our margin expansion and the savings from that really generated a lot of excess free cash flow. So we checked that box at close to 85% in the cloud. That's complete.

Mike: That's complete the one we want to see a little more visibility around before making that decision really to your timing question.

Speaker Change: That's complete the one we want to see a little more visibility around before making that decision really to your timing question.

John Gamble: The one we want to see a.

John Gamble: The one we want to see a little more visibility around before making that decision. Really, to your timing question, is where is the economy? Where is the mortgage market? Where is the hiring market? To be frank, 60 days ago, call it in November and early December, we didn't anticipate rates going to seven or the mortgage market declining 12% over the last six, seven weeks. You know, that has been surprising to us and it's so rapid and so, you know, recent. We want to see a little more time there. You know, where is that mortgage market going? Where's the, where are rates going? You know, what impact are tariffs going to have on that?

Mark Begor: little more visibility around before making that decision. Really, to your timing question, is where is the economy? Where is the mortgage market? Where is the hiring market? To be frank, 60 days ago, call it in November and early December, we didn't anticipate rates going to seven or the mortgage market declining 12% over the last six, seven weeks. You know, that has been surprising to us and it's so rapid and so, you know, recent. We want to see a little more time there. You know, where is that mortgage market going? Where's the, where are rates going? You know, what impact are tariffs going.

Speaker Change: Where is the economy, whereas the mortgage market, whereas the hiring market to be Frank.

Mike: 60 days ago call it.

Speaker Change: 60 days ago call it.

Mike: In kind of November and early December we didn't anticipate rates go into seven or the mortgage market declining 12% over the last six seven weeks.

Speaker Change: In kind of November and early December we didn't anticipate rates go into seven or the mortgage market declining 12% over the last six seven weeks.

Mike: It's been surprising to us and it's so.

Speaker Change: It's been surprising to us and it's so.

Mike: Rapid and so.

Speaker Change: Rapid and so.

Mike: Recent we want to see a little more time, there where is that mortgage mortgage market going where is the where rates going what impact are tariffs going to have on that so I think.

Speaker Change: Recent we want to see a little more time, there where is that mortgage mortgage market going where is the where rates going what impact are tariffs going to have on that so I think.

Mike: Getting through a portion of the year. So we have some more visibility on that I think will be quite important our confidence around.

Speaker Change: Getting through a portion of the year. So we have some more visibility on that I think will be quite important our confidence around.

John Gamble: To have on that?

Mark Begor: So I think, you know, getting through a portion of the year so we have some more visibility on that, I think, will be quite important. You know, our confidence around, you know, our guidance for 2025 is high, with the underpinning of the mortgage market and hiring market, which we think we baselined. It's the best data we have now. And as we mentioned, we're going to have very strong free cash flow generation this year. Even with our EBITDA expansion, we're going to generate a lot of EBITDA and a lot of excess free cash flow. We do plan to use some of that, both leverage that grows with our margins expanding and EBITDA expanding, as well as the free cash flow, to look for continued attractive bolt-on M&A, no change in our bolt-on M&A strategy.

Mike: Our guidance for 2025 is high with the underpinning of the mortgage market and hiring market, which we think we baseline that the best data we have now.

Speaker Change: Our guidance for 2025 is high with the underpinning of the mortgage market and hiring market, which we think we baseline that the best data we have now.

Mike: And as we mentioned, we're going to we're going to have very strong free cash generation. This year, even with our EBITDA expansion, we're going to generate a lot of EBITDA and a lot of excess free cash flow.

Speaker Change: And as we mentioned, we're going to we're going to have very strong free cash generation. This year, even with our EBITDA expansion, we're going to generate a lot of EBITDA and a lot of excess free cash flow.

Mike: We do plan to use some of that both leverage that grows with our margins expanding in EBITDA expanding.

Speaker Change: We do plan to use some of that both leverage that grows with our margins expanding in EBITDA expanding.

Mike: As well as the free cash to look for continued attractive bolt on M&A no change in our bolt on M&A strategy and then we want to return cash to shareholders, we want to get back to growing the dividend again, and we will give that framework on growing the dividend at the time at the right time in 2025, and then we also want to return cash to shareholders.

Speaker Change: As well as the free cash to look for continued attractive bolt on M&A no change in our bolt on M&A strategy and then we want to return cash to shareholders, we want to get back to growing the dividend again, and we will give that framework on growing the dividend at the time at the right time in 2025, and then we also want to return cash to shareholders.

Mark Begor: Then we want to return cash to shareholders. We want to get back to growing the dividend again, and you know, we'll give that framework on growing the dividend, you know, at the time, at the right time in 2025. We also want to return cash to shareholders in, you know, what we would envision is a multi-year buyback program, authorization by our board to buy back stock as we go through 2025, 2026, 2027. Pick that timeframe, and when you look out in our model, I think yours looks like that too. You can pick your mortgage market assumptions or recovery assumptions. We generate a lot of cash over the next three plus years, and it's going to give us the ability to return that cash to shareholders.

Then we want to return cash to shareholders. We want to get back to growing the dividend again, and you know, we'll give that framework on growing the dividend, you know, at the time, at the right time in 2025. We also want to return cash to shareholders in, you know, what we would envision is a multi-year buyback program, authorization by our board to buy back stock as we go through 2025, 2026, 2027. Pick that timeframe, and when you look out in our model, I think yours looks like that too. You can pick your mortgage market assumptions or recovery assumptions. We generate a lot of cash over the next three plus years, and it's going to give us the ability to return that cash to shareholders.

Mike: What we would envision is a multiyear buyback program authorization by our board.

Speaker Change: What we would envision is a multi year buyback program authorization by our board.

Mike: Buyback stock as we go through 'twenty five 'twenty six 'twenty seven you don't pick that timeframe and when you look out in our model I think yours, it looks like that too.

Speaker Change: Buyback stock as we go through 'twenty five 'twenty six 'twenty seven you don't pick that timeframe and when you look out in our model I think yours, it looks like that too.

Mike: And you can pick your mortgage market assumptions or recovery assumptions, we generate a lot of cash over the next three plus years.

Speaker Change: And you can pick your mortgage market assumptions or recovery assumptions, we generate a lot of cash over the next three plus years.

Mike: Give us the ability to return that cash to shareholders. Its been a clear part of our strategy.

Speaker Change: Give us the ability to return that cash to shareholders. Its been a clear part of our strategy.

Mark Begor: It's been a clear part of our strategy, and it's a focus of ours, and we clearly envision implementing that in 2025.

It's been a clear part of our strategy, and it's a focus of ours, and we clearly envision implementing that in 2025.

Mike: And it's a focus of ours.

Speaker Change: And it's a focus of ours.

Mike: We clearly envision.

Speaker Change: We clearly envision.

Mike: Implementing that in 2025.

Speaker Change: Implementing that in 2025.

Mike: Alright, Thank you very much.

Speaker Change: Alright, Thank you very much.

Trevor Burns: All right, thank you very much.

Kyle Peterson: All right, thank you very much.

Speaker Change: Our next questions are from the line of Craig Huber with Huber Research partners. Please proceed with your questions.

Operator: Our next questions are from the line of Craig Huber with Huber Research Partners. Please proceed with your questions. Yeah, thank you.

Operator: Our next questions are from the line of Craig Huber with Huber Research Partners. Please proceed with your questions.

Speaker Change: Yeah. Thank you just wanted to just.

Speaker Change: Yes. Thank you just wanted to just.

Craig Huber: Yeah, thank you. Just want to better understand, obviously trying to forecast the US mortgage market has been quite difficult for a number of years and so forth. You're obviously taking, extrapolating the current trends out for the remainder of the year. There's nothing new with how you guys forecast the mortgage part of your business and so forth. The rest of your business, however, you are making some various assumptions and so forth. Maybe you can just talk about the differences there, about how you put together your outlook for the year. Thank you.

Speaker Change: Better understand obviously forecast U S mortgage market is quite difficult for number of years and so forth you obviously, taking.

Speaker Change: Better understand them and obviously trying to forecast the U S mortgage market is quite difficult for number of years and so forth you obviously, taking.

Mark Begor: Just want to better understand, obviously trying to forecast the US mortgage market has been quite difficult for a number of years and so forth. You're obviously taking, extrapolating the current trends out for the remainder of the year. There's nothing new with how you guys forecast the mortgage part of your business and so forth. The rest of your business, however, you are making some various assumptions and so forth. Maybe you can just talk about the differences there, about how you put together your outlook for the year. Thank you. Yeah, no change in how we do that. We don't have many parts of our business that are impacted by macros really. Mortgage principally is one and to a lesser degree the hiring market; it's a smaller impact.

Speaker Change: Extrapolating the current trends out for the remainder of the year nothing.

Extrapolating the current trends out for the remainder of the year nothing.

Speaker Change: Nothing new with how you guys forecast the mortgage part of your view of your business and so forth. The rest of your business. However, you are making various assumptions and so forth, but maybe you can just talk about the differences there about how you put together your outlook for the year. Thank you.

Speaker Change: Nothing new with how you guys forecast the mortgage part of your view of your business. So for the rest of your business. However, you are making some various assumptions and so forth, but maybe you can just talk about the differences there about how you put together your outlook for the year. Thank you.

Speaker Change: Yes, no change in how we do that we don't have many parts of our business that are impacted by macros really mortgage principally as one and to a lesser degree the hiring market. It's a smaller impact, but when you have a 10% decline in the underlying activity, which we've heard from background screeners has been happening same same thing over the last.

Speaker Change: Yes, no change in how we do that we don't have many parts of our business that are impacted by macro is really mortgage principally as one and to a lesser degree the hiring market. It's a smaller impact, but when you have a <unk>.

Mark Begor: Yeah, no change in how we do that. We don't have many parts of our business that are impacted by macros really. Mortgage principally is one and to a lesser degree the hiring market; it's a smaller impact.

Speaker Change: 10% decline in the underlying activity, which we've heard from background screeners has been happening same same thing over the last.

Mark Begor: But when you have a 10% decline in the underlying activity, which we've heard from background screeners has been happening, same thing over the last, call it 60, 90 days, that has an impact for the rest of the business. We have a lot of visibility. We know that we took price up on 1:1 broadly across all of Equifax. We know what that price is. You know, we know where we have subscription agreements that are in place, multi-year contracts either with minimums or with terms in them that we can forecast. We have deal pipelines where we're adding new business. We have contracts that we signed last year, they're going into effect this year that we lay into our forecast.

But when you have a 10% decline in the underlying activity, which we've heard from background screeners has been happening, same thing over the last, call it 60, 90 days, that has an impact for the rest of the business. We have a lot of visibility. We know that we took price up on 1:1 broadly across all of Equifax. We know what that price is. You know, we know where we have subscription agreements that are in place, multi-year contracts either with minimums or with terms in them that we can forecast. We have deal pipelines where we're adding new business. We have contracts that we signed last year, they're going into effect this year that we lay into our forecast.

Speaker Change: Call it.

Call it.

Speaker Change: 60, 90 days that has an impact to the rest of the business. We have a lot of visibility. We know that we took price up on one one broadly across all of Equifax, we know what that prices.

Speaker Change: We know where we have subscription agreements that are in place to multi year contracts, either with minimums or with a with terms in them that we can forecast we have deal pipelines, where we're adding new business. We have contracts that we signed last year are going into effect. This year that we lay into our forecast.

Speaker Change: We know where we have subscription agreements that are in place to multi year contracts, either with minimums or with.

The terms in them that we can forecast we have deal pipelines, where we're adding new business. We have contracts that we signed last year are going into effect. This year that we lay into our forecast.

Speaker Change: The record side in AWS, we have quite a bit of visibility of new partners that we added to three in the fourth quarter and some that we added in the second half record additions when we expect those to come online and as you know those translate into revenue instantly as soon as we add the records because we had the inquiries coming in with other parts.

Mark Begor: On the record side in EWS, we have quite a bit of visibility of new partners that we added in Q3 in the fourth quarter and some that we added in the second half, record additions, when we expect those to come online. And as you know, those translate into revenue instantly, you know, as soon as we add the records because we have the inquiries coming in, you know, with other partners that are already with us. We also have, you know, lots of programs with them because we don't have all their records typically. So we're working, you know, with them to add those, you know, records in.

On the record side in EWS, we have quite a bit of visibility of new partners that we added in Q3 in the fourth quarter and some that we added in the second half, record additions, when we expect those to come online. And as you know, those translate into revenue instantly, you know, as soon as we add the records because we have the inquiries coming in, you know, with other partners that are already with us. We also have, you know, lots of programs with them because we don't have all their records typically. So we're working, you know, with them to add those, you know, records in.

Speaker Change: <unk> that are already with us and we also have.

Speaker Change: Lots of programs with them because we don't have all their records typically so we're working with them to add those records and so.

Speaker Change: Lots of programs with them because we don't have all their records typically so we're working with them to add those records and so across.

Speaker Change: Across the rest of the business I think we have a lot of visibility and we typically are able to forecast well our goal and setting a framework for the quarter or for the year. In this case first quarter in 2025 is to lay out our best forecast of a forecast that we know how to beat and with a goal of beating it.

Mark Begor: So, you know, across the rest of the business, I think we have a lot of visibility and we typically are able to forecast well. Our goal in setting a framework for the quarter or for the year, in this case Q1 2025, is to lay out our best forecast, a forecast that we know how to meet and with a goal of beating it. And I would say like any company, we try to have the right balance of conservatism in that forecast with that goal of delivering for our investors around what we lay out.

So, you know, across the rest of the business, I think we have a lot of visibility and we typically are able to forecast well. Our goal in setting a framework for the quarter or for the year, in this case Q1 2025, is to lay out our best forecast, a forecast that we know how to meet and with a goal of beating it. And I would say like any company, we try to have the right balance of conservatism in that forecast with that goal of delivering for our investors around what we lay out.

Speaker Change: I I would say like any company. We had tried to have the right balance of conservatism in that forecast with that goal of delivering.

Speaker Change: I would say like any company. We had tried to have the right balance of conservatism in that forecast with that goal of delivering.

Speaker Change: For our investors around what we lay out.

Speaker Change: I mean, specifically like around auto for example, I think our expectation is auto sales, new and used kind of flat, maybe a little better and we again, we get input from our customers similar concept around card and personal loans.

Speaker Change: Okay.

Speaker Change: Specifically like around auto for example, I think our expectation is auto sales, new and used kind of flat, maybe a little better and we again, we get input from our customers similar concept around card and personal loans I mean generally speaking I think we didn't think the.

John Gamble: I mean, some specifically like around auto, for example, I think our expectation is auto sales, new and used, kind of flat, maybe a little better. We again, we get input from our customers. Similar concept around card and personal loans. I mean, generally speaking, I think we didn't. We think the consumer is relatively healthy.

Speaker Change: Generally speaking I think we didn't think the consumer is relatively healthy rank, but we are seeing some cracks in the consumer confidence you've seen that obviously come through in January.

Speaker Change: Tumors relatively healthy rank, but we are seeing some cracks in the consumer confidence you've seen that obviously come through in January.

Mark Begor: Right.

John Gamble: But we are seeing some cracks in consumer confidence. You've seen that obviously come through in January, and then internationally, like we're assuming that we're going to see the markets continue to grow, but nothing substantial, not really any stronger than their long-term average growth framework. And probably the UK and Europe, we're expecting to see slower growth in their long-term framework.

Speaker Change: And then internationally like we're assuming that we're going to see the markets continued to grow but.

Speaker Change: But nothing substantial.

Speaker Change: Nothing substantial not not really any stronger than their long term average growth framework and probably the U K.

Speaker Change: Really any stronger than their long term average growth framework and probably the U K and.

Speaker Change: In Europe, we're expecting to see slower growth in their long term framework.

Speaker Change: I appreciate that my follow up question on the vitality index is there any specific products that you'd want to call out.

Speaker Change: I appreciate that my.

Speaker Change: Follow up question on the vitality index is there any specific products that you'd want to call out.

Operator: I appreciate that.

Craig Huber: I appreciate that. Just a follow up question on the Vitality Index. Are there any specific products that you'd want to call out that you're very energized about for long term growth that you guys are putting in place there? Thank you.

Mark Begor: Just a follow up question on the Vitality Index. Are there any specific products that you'd want to call out that you're very energized about for long term growth that you guys are putting in place there?

Speaker Change: Very energized about for long term growth that you guys are put in place there. Thank you, yes, theres a whole.

Speaker Change: Very energized with non accrual for long term growth that you guys were put in place. There. Thank you, yes, theres a whole bunch and I already highlighted to highlight again because it's top of my list is with <unk> now in the cloud obviously AWS got into cloud a couple of years ago. We can now combine those data assets and we think thats going to be super powerful.

Bunge I already highlighted to highlight again, because it's top of my list as well.

Trevor Burns: Thank you.

Mark Begor: Yeah, there's a whole bunch, and I already highlighted. I'll highlight again because it's top of my list. You know, with USIS now in the cloud, obviously EWS got in the cloud a couple years ago. We can now combine those data assets, and we think that's going to be super powerful. As I mentioned a few minutes ago and in my prepared comments, you know, the rollout of a mortgage credit file that includes twin indicators on it, you know, we think is very powerful because only we can deliver that. We're doing the same thing with our cell phone utility attributes on the mortgage credit file, and then we're going to do the same thing in auto and likely in personal loans. Because we think it'll differentiate our credit file, and that's going to be particularly powerful.

Speaker Change: With <unk> now in the cloud, obviously AWS got into cloud a couple of years ago. We can now combine those data assets and we think thats going to be super powerful and as I mentioned, a few minutes ago and in my prepared comments.

Speaker Change: And as I mentioned, a few minutes ago and in my prepared comments the rollout of a mortgage credit file it includes twin indicators on it.

Speaker Change: Roll out of a mortgage credit file that includes twin indicators on it.

Speaker Change: We think is very powerful because only we can deliver that we're doing the same thing with our cellphone utility attributes into mortgage credit file and then we're going to do the same thing in auto and likely in personal loans, because we think it will differentiate our credit file and that's going to be particularly powerful when there is only one credit file being pulled.

Mark Begor: When there's only one credit file being pulled, we want to be the one to be pulled. We want to drive market share there. So I think the cloud is really giving us in our single data fabric a lot of opportunities to leverage our differentiated data assets. We're also having great success with a solution here in the US we call OneScore, which takes our non-credit file data sets. And as you know, we have the cell phone utility data set, we have DataX, Teletrack that we acquired. You put that together. We have a very large set of consumers and trade lines that are not in the credit file, which allows us to differentiate our credit file again and drive performance. The third one I would highlight is just the use of AI. We've been ramping up our AI capabilities around scores and models and products.

When there's only one credit file being pulled, we want to be the one to be pulled. We want to drive market share there. So I think the cloud is really giving us in our single data fabric a lot of opportunities to leverage our differentiated data assets. We're also having great success with a solution here in the US we call OneScore, which takes our non-credit file data sets. And as you know, we have the cell phone utility data set, we have DataX, Teletrack that we acquired. You put that together. We have a very large set of consumers and trade lines that are not in the credit file, which allows us to differentiate our credit file again and drive performance. The third one I would highlight is just the use of AI. We've been ramping up our AI capabilities around scores and models and products.

We want to be the one to be pulled and we want to drive market share. There. So I think the cloud is really giving us a single data fabric a lot of opportunities to leverage our differentiated data assets. We're also having great success with our solution here in the U S. We call one score, which takes our non credit file datasets and as you know we have the cellphone utility day.

Speaker Change: We want to be the one to be pulled and we want to drive market share. There. So I think the cloud is really giving us a single data fabric a lot of opportunities to leverage our differentiated data assets. We're also having great success with our solution here in the U S. We call one score, which takes our non credit file datasets and as you know we are.

Speaker Change: The cellphone utility data set we have data ex <unk> that we acquired you put that together we have a very large set of consumers and trade lines that are not in the credit file which allows us to differentiate our credit file again to drive performance. The third one I would highlight is just the use of AI, we've been ramping up our AI.

Speaker Change: To set we have data ex Intel attractive we acquired you put that together we have a very large set of consumers and trade lines that are not in the credit file which allows us to differentiate our credit file again to drive performance.

Speaker Change: One I would highlight is just the use of AI.

Speaker Change: Been ramping up our AI capabilities around scores and models and products I think as you know we're using it in the vast majority of our models and scores today and we're seeing very meaningful performance lifts around wider sets of data being used in that score and model driving performance like the one score.

Speaker Change: Capabilities around scores and models and products I think as you know we're using it in the vast majority of our models and scores today and we're seeing very meaningful performance lifts around wider sets of data being used in that score and model driving performance like the one score.

Mark Begor: I think, as you know, we're using it in the vast majority of our models and scores today. We're seeing very meaningful performance lifts around wider sets of data being used in that score and model driving performance like the OneScore data element. Whole bunch there. As you know, innovation and new products is central to our strategy and our DNA. At Equifax, you know, we report to you, but we run the company around the Vitality Index and that makes us a stronger partner with our customers. When we're innovating and bringing new ideas to our customers, we're viewed as a more valued partner. That's clearly central to how we want to operate in Equifax going forward in the cloud. Our scale differentiated data really enables us to be advantaged around that innovation and new products.

I think, as you know, we're using it in the vast majority of our models and scores today. We're seeing very meaningful performance lifts around wider sets of data being used in that score and model driving performance like the OneScore data element. Whole bunch there. As you know, innovation and new products is central to our strategy and our DNA. At Equifax, you know, we report to you, but we run the company around the Vitality Index and that makes us a stronger partner with our customers. When we're innovating and bringing new ideas to our customers, we're viewed as a more valued partner. That's clearly central to how we want to operate in Equifax going forward in the cloud. Our scale differentiated data really enables us to be advantaged around that innovation and new products.

Speaker Change: Data elements, so whole bunch, there and as you know.

Speaker Change: Innovation and new products is central to our strategy and our DNA at Equifax.

Innovation and new products is central to our strategy and our DNA at Equifax.

Speaker Change: We report to you, but we run the company around the vitality index.

Speaker Change: That makes us a stronger partner with our customers when we're innovating and bringing new ideas to our customers.

Speaker Change: We are viewed as a more valued partner so that's.

Speaker Change: We're viewed as a more valued partner so that's.

Speaker Change: Clearly central to how we want to operate and equifax going forward in the cloud and our scale differentiated data really enables us to be advantaged around that innovation and new products.

Speaker Change: I just wanted to clarify my answer to the last question about internationally kind of international.

Speaker Change: I just wanted to clarify my answer to the last question about internationally International.

John Gamble: I just wanted to clarify. My answer to the last question about international growth rates was relative to economies, not the Equifax growth rates themselves.

Speaker Change: International growth rates was relative to economies equifax growth rates themselves.

Speaker Change: Understood. Thanks, guys.

Mark Begor: Understood.

Craig Huber: Understood.

Operator: Thanks guys. Our next questions are from the line of Jason Haas with Wells Fargo. Please proceed with your questions.

Speaker Change: Our next questions are from the line of Jason Haas with Wells Fargo. Please proceed with your question.

Jason Haas: Hey, good morning, and thanks for taking my questions.

Speaker Change: Hi, good morning, and thanks for taking my questions.

Trevor Burns: Hi, good morning and thanks for taking my questions. Apologies if I missed it, but can you say what the talent verification outperformance was versus the white collar hiring market in Q4 and then how do you expect that to trend going forward? Because I think that will give us some helpful understanding of how you could drive talent, excluding the impacts from the softer hiring market.

Jason Haas: Hi, good morning and thanks for taking my questions. Apologies if I missed it, but can you say what the talent verification outperformance was versus the white collar hiring market in Q4 and then how do you expect that to trend going forward? Because I think that will give us some helpful understanding of how you could drive talent, excluding the impacts from the softer hiring market. Thanks.

Jason Haas: Apologies if I missed it but can you say what the talent verification outperformance was versus the white collar and white collar hiring market in four Q and then how do you expect that to trend going forward, because I think that will get US helpful. Understanding of how you think about talent.

Speaker Change: Apologies if I missed it but can you say what the talent verification outperformance was versus white collar and white collar hiring market in <unk> and then how do you expect that to trend going forward, because I think that will give us helpful. Understanding of how you think about talent.

Jason Haas: Excluding.

Speaker Change: Excluding.

Jason Haas: The impact from the softer hiring market yes.

Speaker Change: The impacts from the softer hiring market yes.

Jason Haas: Yes, so the fourth quarter, we indicated it was about eight points.

Speaker Change: Yes, so the fourth quarter, we indicated it was about eight points.

Mark Begor: Thanks.

Operator: Yeah.

John Gamble: Yeah. So at Q4 we indicated it was about eight points better, right? That was a little weaker than it was in Q3. I don't think we gave guidance for what it would be going forward, but historically we've been running somewhere between high single digits and low double digits better than the market over time. Q4 was a little weaker than Q3. And it was really specific to the way pricing, our annual pricing, was executed in the two different years. Our 2024 annual price increases, actually a portion of them were executed in Q4 2023 and then the remainder in Q1 2024. Our 2025 price increases substantially hit in Q1 2025. So we just had a grow over effect issue in Q4 2024 versus 2023 because of the difference in timing of price increases.

John Gamble: So at Q4 we indicated it was about eight points better, right? That was a little weaker than it was in Q3. I don't think we gave guidance for what it would be going forward, but historically we've been running somewhere between high single digits and low double digits better than the market over time. Q4 was a little weaker than Q3. And it was really specific to the way pricing, our annual pricing, was executed in the two different years. Our 2024 annual price increases, actually a portion of them were executed in Q4 2023 and then the remainder in Q1 2024. Our 2025 price increases substantially hit in Q1 2025. So we just had a grow over effect issue in Q4 2024 versus 2023 because of the difference in timing of price increases.

Jason Haas: Better.

Speaker Change: Better.

Jason Haas: That was a little weaker than it was in the third quarter I don't think we gave guidance for what it would be going forward, but.

Speaker Change: That was a little weaker than it was in the third quarter I don't think we gave guidance for what it would be going forward, but.

Jason Haas: But historically, we've been running somewhere between high single digits, and low double digits better than the market over time.

Speaker Change: But historically, we've been running somewhere between high single digits, and low double digits better than the market over time.

Jason Haas: Fourth quarter was a little weaker than third quarter and it was really specific to the way our pricing our annual pricing was executed in the two different years, our 2024 annual price increases actually a portion of them were executed in the fourth quarter of 'twenty three and then the remainder in the first quarter of 24 or 2025 price increases.

Speaker Change: Fourth quarter was a little weaker than third quarter and it was really specific to the way our pricing our annual pricing was executed in the two different years, our 2024 annual price increases actually a portion of them were executed in the fourth quarter of 'twenty three and then the remainder in the first quarter of 24 or 2025 price increases.

Jason Haas: Substantially hit in the first quarter of 2025, so we just had a grow over effect issue.

Speaker Change: Substantially hit in the first quarter of 2025, so we just had a grow over effect issue.

Jason Haas: In the fourth quarter of 24 versus 2023 because of the difference in timing of our price increases.

Speaker Change: In the fourth quarter of 24 versus 2023 because of the difference in timing of our price increases.

Speaker Change: Okay, Great. That's very helpful. Thank you and then as a follow up can you talk about the implied usia's mortgage outperformance for 2025, I think if I did the math right.

Speaker Change: Okay, Great. That's very helpful. Thank you and then as a follow up can you talk about the implied use science mortgage outperformance for 2025, I think if I can.

Mark Begor: Okay, great.

Trevor Burns: That's very helpful. Thank you. And then as a follow up, can you talk about the implied USIS mortgage outperformance for 2025? I think if I did the math right and I heard everything correctly, it's about 20 percentage points of mortgage outperformance. It's a bit of a step down from 2024. I think I might know why, but can you talk about that? That'd be helpful, thanks.

Jason Haas: That's very helpful. Thank you. And then as a follow up, can you talk about the implied USIS mortgage outperformance for 2025? I think if I did the math right and I heard everything correctly, it's about 20 percentage points of mortgage outperformance. It's a bit of a step down from 2024. I think I might know why, but can you talk about that? That'd be helpful, thanks.

Speaker Change: Did the math right and I heard it.

Jason Haas: Everything correctly, its about 20 percentage points mortgage outperformance.

Speaker Change: Everything correctly, its about 20 percentage points mortgage outperformance.

Jason Haas: It's a bit of a step down from 2024, I think I'm NOI, but can you can you talk about that that'd be helpful. Thanks.

Speaker Change: It's a bit of a step down from 2024, I think I'm NOI, but can you can you talk about that that'd be helpful. Thanks.

Speaker Change: Yes. The biggest difference is really around and it was a question that was asked earlier around soft pulls around pre qual and and pre approval products. What we saw going from 23% to 224 since those products. We're relatively new in late 'twenty three going into 2024 was very very substantial growth in those products in 2024.

Speaker Change: Yes, the biggest difference is.

John Gamble: Yes, the biggest difference is really around, and it was a question that was asked earlier around soft pulls around pre qual and pre approval products. What we saw going from 2023 to 2024, since those products were relatively new in late 2023, going into 2024 was very, very substantial growth in those products in 2024. So that drove a substantial amount of outperformance relative to hard pulls. What we're expecting in 2025 is we're continuing to expect pre approval and pre qual to perform well, but the growth rate will obviously be much lower because of the fact that we're coming off of a much larger base. So that's really the biggest difference in our performance. We're expecting to continue to perform well year on year. We continue to drive more new products.

Speaker Change: Really around and it was a question that was asked earlier around softballs around pre qual and and pre approval products. What we saw going from 23% to 224 since those products. We're relatively new in late 'twenty three going into 2024 was very very substantial growth in those products in 2024.

Speaker Change: So that drove a substantial amount of outperformance relative to hartzell.

Speaker Change: So that drove a substantial amount of outperformance relative to hard pills.

Speaker Change: What we what we're expecting in 2025 is we're continuing to.

Speaker Change: What we what we're expecting in 2025 is we're continuing to expect pre approval and pre qual to perform well, but the growth rate will obviously be much lower because of the fact that we're coming off of a much larger base. So so that's really the biggest difference in our performance we're expecting to continue to perform well year on year, we continue to drive more.

Speaker Change: We expect pre approval and pre qual to perform well, but the growth rate will obviously be much lower because of the fact that we're coming off of a much larger base. So so that's really the biggest difference in our performance we're expecting to continue to perform well year on year, we continue to drive more new products Mark talked about it substantially.

Speaker Change: Products Mark talked about it substantially.

John Gamble: Mark talked about it substantially, but it's really just that the difference in the base on pre-qual that's driving the.

Mark talked about it substantially, but it's really just that the difference in the base on pre-qual that's driving the difference in growth rate.

Speaker Change: It's really just that the difference in the base on pre qual, that's driving the difference in growth rate.

Speaker Change: But it's really just that the difference in the base on <unk>, that's driving the difference in growth rate.

Speaker Change: Yeah.

Mark Begor: Difference in growth rate.

Speaker Change: Okay.

Speaker Change: Okay, and sorry to ask a third but on a second.

Speaker Change: Sorry to ask a third ball, but our second.

Trevor Burns: Okay, and sorry to ask you a third follow up or second follow up, but I thought maybe you would also allude to the supplier price increase. So is that less of a tailwind in 2025 than it was in 2024?

Jason Haas: Okay, and sorry to ask you a third follow up or second follow up, but I thought maybe you would also allude to the supplier price increase. So is that less of a tailwind in 2025 than it was in 2024?

I thought maybe you would also alluded to the supplier price increase so is that less of a tailwind in 2025 and then it was in 2024.

Speaker Change: I thought maybe you would also allude to the supplier price increase so is that less of a tailwind in 2025 than it was in 2024.

On dollar amount, they're relatively similar.

Speaker Change: On dollar amount, they're relatively similar.

John Gamble: On dollar amounts, they're relatively similar.

Speaker Change: Okay.

Speaker Change: Helpful. Thank you.

Speaker Change: That's helpful. Thank you.

Operator: Okay.

Jason Haas: Okay. All right, thank you.

Trevor Burns: All right, thank you.

Speaker Change: The next questions are from the line of Owen Lau with Oppenheimer. Please proceed with your questions.

Operator: The next questions are from the line of Owen Lau with Oppenheimer. Please proceed with your questions.

Owen Lau: Hey, good morning. Thank you for taking my question. So on the international revenue growth was 11% you'll be getting in the fourth quarter and your guide was 7% in 2025% and 6% in the first quarter could you. Please unpack a little bit more about the July felt that slowdown. Thanks.

Owen Lau: Good morning. Thank you for taking my question. So on the international revenue growth. It was 11% you'll be getting in the fourth quarter and you're guiding to 7% in 2025% and 6% in the first quarter could you. Please unpack a little bit more about the July felt that slowdown. Thanks.

Trevor Burns: Hey, good morning.

Owen Lau: Hey, good morning. Thank you for taking my question. On your international revenue growth, it was 11% year over year in Q4 and you guided 7% in 2025 and 6% in the first quarter. Could you please unpack a little bit more about the driver of that slowdown? Thanks.

Mark Begor: Thank you for taking my question.

Trevor Burns: On your international revenue growth, it was 11% year over year in Q4 and you guided 7% in.

John Gamble: 2025 and 6% in the first quarter.

Trevor Burns: Could you please unpack a little bit more about the driver of that slowdown? Thanks.

Owen Lau: Actually we think 7% is quite good right. So our long term model is seven to nine.

Owen Lau: So actually we think 7% is quite good right. So our long term model is 7% to nine.

John Gamble: Actually, we think 7% is quite good. Right. So our long-term model is 7 to 9. So we feel very, very good about the 7 to 9% growth. I think Mark talked about where we're seeing the growth come from, and the good news is what we're seeing is really improved performance and growth really across all geographies. The only geography I think that's dealing with a little bit of market headwinds is the UK, and we're seeing some economic slowdown in the UK that's affecting us in 2025, as well as we're expecting the UK economy in general to.

Speaker Change: So we feel very very good about the 7% to 9% growth I think mark talked about where we're seeing the growth come from.

Speaker Change: So we feel very very good about the 7% to 9% growth I think mark talked about where we're seeing the growth come from and and the good news is what we're seeing is really improved performance and growth really across all geographies. The only geography, I think thats dealing with a little bit of market headwinds as the U K and we're seeing some economic slowdown in the U K.

Speaker Change: And the good news is what we're seeing is really improved performance and growth really across all geographies. The only geography, I think thats dealing with a little bit of market headwinds as the U K and we're seeing some economic slowdown in the U K, that's affecting that's affecting us.

Speaker Change: That's affecting that is affecting us in.

Speaker Change: In 2025, as well as we're expecting the U K economy in general to be a bit weaker Brazil was really strong in the fourth quarter. We had an outstanding performance from Brazil in the fourth quarter into the second half really in the second half really we're expecting we're expecting to Brazil to perform well in 2020, and 2025, perhaps not double digits, so, but but we're very happy with the way our Brazil acquisition.

Mark Begor: Be a bit weaker.

John Gamble: Brazil was really strong in the Q4. We had an outstanding performance from Brazil.

Mark Begor: In the Q4 and in the.

John Gamble: Second half, really, in the second half, really, we're expecting Brazil to perform well in 2020, in 2025. Perhaps not double-digit, but we're very happy with the way our Brazil acquisition is performing. So net, net, I'd say we feel pretty good about the 7% next year.

Speaker Change: <unk> is performing so net net I would say, we feel pretty good about the about 7% next year.

Speaker Change: So net net I would say, we feel pretty good about the about 7% next year.

Speaker Change: Got it so quickly on mortgage assumption I know there is a lot of questions about mortgage already but you mentioned that you haven't baked in any way type or a rate increase but you say, it's a let's say 25 to 50 basis point rate cut in 2025.

Speaker Change: Got it so quickly on mortgage assumption I know there is a lot of questions about mortgage already but you mentioned that you haven't baked in any way type or or weight increase but you say, it's a let's say 25 to 50 basis point rate cut in 2025.

Mark Begor: Got it.

Owen Lau: Got it. So quickly on mortgage assumption, I know there's a lot of questions about mortgage already, but you mentioned that you haven't baked in any rate cut or rate increase. But if there is a, let's say 25 to 50 basis points rate cut in 2025, do you still expect incremental benefit for your mortgage inquiry? Given that last year 30-year mortgage went down to 6% and there was a refinancing wave already, how do you think about that this year? Thanks.

Trevor Burns: So quickly on mortgage assumption, I know there's a lot of questions about mortgage already, but you mentioned that you haven't baked in any rate cut or rate increase. But if there is a, let's say.

Mark Begor: 25 to 50 basis points rate cut.

Speaker Change: You still expect incremental benefits for your mortgage inquiries given that last year's 30 year mortgage went down to 6% and there wasn't a refinancing wave already how do you think about that this year we've seen.

Speaker Change: You still expect incremental benefits for your mortgage inquiries given that last year 30 year mortgage went down to 6% and there wasn't a refinancing wave already how do you think about that this year we've seen.

Trevor Burns: In 2025, do you still expect incremental benefit for your mortgage inquiry? Given that last year 30-year mortgage went down to 6% and there was a refinancing wave already, how do you.

Mark Begor: Think about that this year?

John Gamble: Thanks.

Speaker Change: With changes in the 10 year and changes in mortgage rates had a definitely an.

Mark Begor: Yeah, we've seen with changes in the 10-year and changes in mortgage rates had definitely an impact back in kind of August, September when mortgage rates went down with the 10-year in advance of the election. We did see an uptick in activity or inquiries, both shopping and mortgages, both purchase and refi, as you point out. This late in the year impact that happened in mid-December and all the way through January when rates went above seven, you know, surprised us with the magnitude of it and how deep it's been, you know, to drop another 12 points. But yeah, you know, if we've clearly seen as rates move up, there's an impact and we would expect the same if rates come down.

Speaker Change: With changes in the 10 year and changes in mortgage rates had a definitely an.

Speaker Change: Impact back in kind of August September when mortgage rates went down with the 10 year in advance of the election, we did see an uptick in activity or inquiries, both shopping and mortgages, both purchase and refi as you point out.

Speaker Change: The impact back in kind of August September when mortgage rates went down with the 10 year in advance of the election, we did see an uptick in activity or inquiries, both shopping and mortgages, both purchase and refi as you point out.

Speaker Change: This late in the year impacted happened in mid December and all the way through January when rates went above seven surprised us with the magnitude of it and how deep its been to drop another 12 points.

This late in the year impacted happened in mid December and all the way through January when rates went above seven surprised us with the magnitude of it and how deep its been to drop another 12 points.

Speaker Change: But yes.

Speaker Change: We've clearly seen as rates move up.

Speaker Change: There is an impact and we would expect the same if rates come down.

Speaker Change: It's hard to see that now with rates with the tariff discussions going on.

Mark Begor: It's hard to see that now, you know, with rates, you know, the tariff discussions going on and when is that going to settle down in the marketplace and how the bond market reacts, which, as you know, has a big impact on mortgage rates. And then John mentioned it, and I mentioned it also, is that there's some element of consumer confidence that is lower right now, which rolls into decisions around buying a home or decisions around buying a car. That clearly is consumer confidence is lower. Perhaps with all the activity taking place in the new administration, you know, we're clearly seeing that. But you know, over the long term, you know, we're 50% below historic levels in mortgage inquiry activity. We don't think that's going to stay there over the long term. The question is when will rates come down?

It's hard to see that now, you know, with rates, you know, the tariff discussions going on and when is that going to settle down in the marketplace and how the bond market reacts, which, as you know, has a big impact on mortgage rates. And then John mentioned it, and I mentioned it also, is that there's some element of consumer confidence that is lower right now, which rolls into decisions around buying a home or decisions around buying a car. That clearly is consumer confidence is lower. Perhaps with all the activity taking place in the new administration, you know, we're clearly seeing that. But you know, over the long term, you know, we're 50% below historic levels in mortgage inquiry activity. We don't think that's going to stay there over the long term. The question is when will rates come down?

Speaker Change: When is that going to settle down in the marketplace and how the bond market reacts which as you know has a big impact on the on mortgage rates and then John mentioned it and I mentioned. It also is that there is some element of consumer confidence.

Speaker Change: When is that going to settle down in the marketplace.

Speaker Change: The bond market reacts, which as you know has a big impact on on mortgage rates and then John mentioned it and I mentioned. It also is that there is some element of consumer confidence.

Speaker Change: Is lower right now, which rolls into decisions around.

Speaker Change: Buying a home or decisions around buying a car that clearly is consumer confidence is lower perhaps with all the activity taking place in the new administration.

Speaker Change: We're clearly seeing that but over the long term.

Speaker Change: We are.

Speaker Change: We're.

Speaker Change: 50% below historic levels and mortgage inquiry activity, we don't think that's going to stay there over the long term.

Speaker Change: Question is when will rates come down and we've been very clear and we showed it in our deck again today that we expect that to be a very meaningful impact for equifax to the tune of over $1 billion of incremental revenue as well as incremental margin.

Speaker Change: <unk> is when will rates come down and we've been very clear and we showed it in our deck again today that we expect that to be a very meaningful impact for equifax to the tune of over $1 billion of incremental revenue as well as incremental margin and.

Mark Begor: We've been very clear and we showed it in our deck again today, that, you know, we expect that to be a very meaningful impact for Equifax to the tune of over $1 billion of incremental revenue as well as incremental margin. We'll flow that through. If there's a positive impact against our -12 outlook, we would expect that to be accretive to our framework for 2025, meaning that we'd have incremental revenue and we'd let that margin drop through. We're doing the right investments for the future of Equifax as you expect us to do. We wouldn't incrementally invest more. If the mortgage market recovers, we're going to continue to focus over the long term for Equifax and if there is an uptick that's going to drive our margins up and our EPS and our cash flow up.

We've been very clear and we showed it in our deck again today, that, you know, we expect that to be a very meaningful impact for Equifax to the tune of over $1 billion of incremental revenue as well as incremental margin. We'll flow that through. If there's a positive impact against our -12 outlook, we would expect that to be accretive to our framework for 2025, meaning that we'd have incremental revenue and we'd let that margin drop through. We're doing the right investments for the future of Equifax as you expect us to do. We wouldn't incrementally invest more. If the mortgage market recovers, we're going to continue to focus over the long term for Equifax and if there is an uptick that's going to drive our margins up and our EPS and our cash flow up.

Speaker Change: We'll flow that through if there is a.

Speaker Change: Positive impact against our minus 12 outlook, we would expect that to be accretive to our framework for.

Speaker Change: For 2025, meaning that we would have incremental revenue and we'd let that margin drop through.

Speaker Change: Doing the right investments for the future of Equifax as you would expect us to do we wouldn't incur.

Speaker Change: Incrementally invest more if the mortgage market recovers, we're going to continue to focus over the long term for equifax and if there is an uptick that's going to drive our margins up in our EPS and our cash flow.

Speaker Change: And as Mark mentioned again, our long term framework only assumes that we're going to see modest growth in overall markets, including mortgage sync, 2% to 3% range. So again to deliver our long term framework.

John Gamble: As Mark mentioned again, our long-term framework only assumes that we're going to see modest growth in overall markets, including mortgage, think 2% to 3%. Right. So again, to deliver our long-term framework, which includes substantial revenue growth and earnings growth of north to 10%, we don't need the mortgage market to fully recover. We just need the mortgage market to stabilize and start growing slowly. Two to three points a year and we can deliver extremely well.

Speaker Change: Which includes substantial revenue growth and earnings growth of north of 10% rate, we don't need a mortgage the mortgage market to fully recover we just need the mortgage market to stabilize and start growing slowly two to three points a year and we can deliver extremely well.

Speaker Change: Got it thanks a lot.

Trevor Burns: Got it.

Owen Lau: Got it. Thanks a lot.

Operator: Thanks a lot. Thank you. Our next questions are from the line of Andrew Nicholas with William Blair. Please proceed with your questions.

Speaker Change: Thank you.

Operator: Thank you. Our next questions are from the line of Andrew Nicholas with William Blair. Please proceed with your questions.

Speaker Change: Our next questions are from the line of Andrew Nicholas with William Blair. Please proceed with your question.

Andrew Nicholas: Hi, good morning, Thanks for taking my questions.

Trevor Burns: Hi, good morning.

Andrew Nicholas: Hi, good morning. Thanks for taking my questions. First one is on margins. I think intra-quarter you talked about wanting to or thinking you can kind of approach 100 basis points of a margin expansion. 25. Obviously, the 25 basis point guide this year is a little bit lower, but if I do the math, it seems like the lighter mortgage would more than account for that delta. So I'm wondering if there were other kind of cost actions you took intra-quarter to protect margins or if maybe you're getting a bit better expansion than you had thought from the tech transformation in 2025.

Mark Begor: Thanks for taking my questions. First one is on margins. I think intra-quarter you talked about wanting to or thinking you can kind of approach 100 basis points of a margin expansion. 25. Obviously, the 25 basis point guide this year is a little bit lower, but if I do the math, it seems like the lighter mortgage would more than account for that delta. So I'm wondering if there were other kind of cost actions you took intra-quarter to protect margins or if maybe you're getting a bit better expansion than you had thought from the tech transformation in 2025.

Andrew Nicholas: First one is on margins I think intra quarter you talked about.

Andrew Nicholas: Wanting to or thinking you can kind of approach a 100 basis points of margin expansion 25, obviously 25 basis point guide this year is a little bit lower but.

Speaker Change: If I do the math it seems like the lighter mortgage would more than account for that Delta. So I'm wondering if if there were other kind of cost actions you took intra quarter to protect margins or if maybe youre getting a bit better expansion than you had thought from the tech transformation in 'twenty five.

Andrew Nicholas: If I do the math it seems like the lighter mortgage would more than account for that Delta. So I'm wondering if if there were other kind of cost actions you took intra quarter to protect margins or if maybe you are getting a bit better expansion than you had thought from the tech transformation in 2005.

Speaker Change: Yes. So the numbers you quoted are correct right. So I think the team did a really nice job in the fourth quarter. What you saw is on weaker revenue. We delivered the margins, we committed and I think the team did a nice job of managing costs as we went through the fourth quarter. So obviously as we're going into next year, we're continuing to try to manage costs closer.

Andrew Nicholas: Yes. So the numbers you quoted are correct right. So I think the team did a really nice job in the fourth quarter. What you saw is on weaker revenue. We delivered the margins, we committed and I think the team did a nice job of managing costs as we went through the fourth quarter. So obviously as we're going into next year, we're continuing to try to manage cost close.

Operator: Yeah.

John Gamble: Yeah. So the numbers you quoted are correct. Right. So I think the team did a really nice job in the fourth quarter. What you saw is, on weaker revenue, we delivered the margins we committed, and I think the team did a nice job of managing costs as we went through the Q4.

John Gamble: So the numbers you quoted are correct. Right. So I think the team did a really nice job in the fourth quarter. What you saw is, on weaker revenue, we delivered the margins we committed, and I think the team did a nice job of managing costs as we went.

Mark Begor: Through the Q4.

John Gamble: So obviously as we're going into next year, we're continuing to try to manage costs closely to allow ourselves to deliver margin growth even in the face of those substantial declines in both mortgage, but also talent.

Mark Begor: So obviously as we're going into next year, we're continuing to try to manage costs closely to allow ourselves to deliver margin growth even in the face of those substantial declines in both mortgage, but also talent.

Speaker Change: <unk> to allow ourselves to deliver margin growth even in the face of that was substantial declines in both mortgage but also talent. So we implemented sizable cloud cost savings in the third quarter that as you know are giving us year over year benefit in 2025, So we have real visibility of that but those are done right. So we've already completed those.

Andrew Nicholas: <unk> to allow ourselves to deliver.

Andrew Nicholas: Margin growth even in the face of that was substantial declines in both mortgage but also talent. So we implemented sizable cloud cost savings in the third quarter that as you know are giving us year over year benefit in 2025. So we have real visibility of that but those are done right. So we've already completed those so that's good news for us as we go in.

Mark Begor: We implemented sizable cloud cost savings in Q3 that, as you know, are giving us year-over-year benefit in 2025. So we have real visibility that. But those are done right, you know, so we've already completed those. So you know that that's good news for us as we go into 2025 and we have some incremental cloud cost savings. As you know, we still have some markets we're completing. We're going to complete Spain in Q1. We'll get some small benefit from that. We've got Paraguay; we completed in December, you know, so those kind of completions that kind of roll through 2025 as we move from that close to 85% of our rev in the cloud towards the 100 percent present incremental cloud cost savings as we go through principally in 2025. So we've got those in our outlook. Perfect, thank you.

We implemented sizable cloud cost savings in Q3 that, as you know, are giving us year-over-year benefit in 2025. So we have real visibility that. But those are done right, you know, so we've already completed those. So you know that that's good news for us as we go into 2025 and we have some incremental cloud cost savings. As you know, we still have some markets we're completing. We're going to complete Spain in Q1. We'll get some small benefit from that. We've got Paraguay; we completed in December, you know, so those kind of completions that kind of roll through 2025 as we move from that close to 85% of our rev in the cloud towards the 100 percent present incremental cloud cost savings as we go through principally in 2025. So we've got those in our outlook.

Speaker Change: So that's a good news for us as we go into 'twenty five and we have some incremental cloud cost savings as you know we still have some markets, where completing we're going to complete Spain in the first quarter, we will get some small benefit from that we've got Paraguay, we completed in December.

Andrew Nicholas: 25, and we have some incremental cloud cost savings as you know we still have some markets, where completing we're going to complete Spain in the first quarter, we'll get some small benefit from that we've got Paraguay, we completed in December.

Speaker Change: So those kind of completions that kind of roll through 'twenty five as we move from that you know close to 85% of our revenue in the cloud towards the 100%.

Andrew Nicholas: So those kind of completions that kind of roll through 'twenty five as we move from that close to 85% of our revenue in the cloud towards the.

Andrew Nicholas: 100%.

Speaker Change: Rent incremental cloud cost savings as we go through.

Andrew Nicholas: <unk> incremental cloud cost savings as we go through principally in 25, So we've got those in our outlook.

Speaker Change: Principally in 25, so we've got those in our outlook.

Speaker Change: Perfect. Thank you and then for my follow up I know, it's a little bit more detail on the new product that you are.

Andrew Nicholas: Perfect. Thank you and then for my follow up I know, it's a little bit more detailed but on the new product that you are or a set of products that you're offering that are going to have the twin data flags.

Andrew Nicholas: Perfect, thank you. And then for my follow up, I know it's a little bit more detailed, but on the new product that you're or set of products that you're offering that are going to have the twin beta flags on them in mortgage and in auto later in the year, is that predominantly a market share play or do you also get more price for those products with that flag? Just trying to understand kind of strategically how that plays out.

Mark Begor: And then for my follow up, I know it's a little bit more detailed, but on the new product that you're or set of products that you're offering that are going to have the twin beta flags on them in mortgage and in auto later in the year, is that predominantly a market share play or do you also get more price for those products with that flag? Just trying to understand kind of strategically how that plays out. We'd look for both. If you think about mortgage where some customers are only using one file in shopping, we want to be that file. So getting that incremental revenue or market share as you describe it is very attractive. We're delivering more value so we should get price for it. And then same thing in auto. Auto, many dealers will pull one mortgage credit file.

Speaker Change: Our set of products that you're offering that are going to have the twin data lags.

Speaker Change: And in mortgage and auto later in the year is is that predominantly a market share play or do you also get.

Andrew Nicholas: And then in mortgage and in auto later in the year is is that predominantly a market share play or do you also get.

Speaker Change: More price for those products with with that flag, just trying to understand kind of strategically how that plays out.

Andrew Nicholas: More price for those products with with that flag, just trying to understand kind of strategically how that plays out.

Speaker Change: Look for both.

Andrew Nicholas: We'd look for both.

Mark Begor: We'd look for both. If you think about mortgage where some customers are only using one file in shopping, we want to be that file. So getting that incremental revenue or market share as you describe it is very attractive. We're delivering more value so we should get price for it. And then same thing in auto. Auto, many dealers will pull one mortgage credit file.

Speaker Change: If you think about.

Andrew Nicholas: If you think about.

Speaker Change: Mortgage where some customers are only using one file and shopping we want to be that file so getting that incremental revenue or market share as you describe it as very attractive.

Andrew Nicholas: Mortgage where some customers are only using one file and shopping we want to be that file so getting that incremental revenue or market share as you describe it as very attractive.

Speaker Change: Delivering more value. So we should get price for it and then same thing in auto auto.

Andrew Nicholas: We're delivering more value. So we should get price for it and then same thing on auto auto.

Speaker Change: Many dealers will pull one mortgage credit file when a consumer comes in we want to be that credit file we pulled because it's pulled because we're going to provide incremental information around the eligibility for that consumer because remember the auto and in mortgage but I'll use Auto example, a consumer comes in their credit is super important.

Andrew Nicholas: Many dealers will pull one mortgage credit file when a consumer comes in we want to be that credit file we pulled because it's pulled because we're going to provide incremental information around the eligibility for that consumer because remember.

Mark Begor: When a consumer comes in, we want to be that credit file we pull because it's pulled, because we're going to provide incremental information around the eligibility for that consumer. Because remember in auto and in mortgage, but I'll use auto example, a consumer comes in, their credit is super important. But many mortgage auto loans require income verification in certain income levels in order to qualify for that auto loan. Knowing that up front in the early stages of that consumer interaction is super valuable and only Equifax can provide it. As I mentioned, we'll likely have a solution for personal loans, and as an old credit card guy I know the value of combining income with credit score even in a credit card space. So the power we have now is having those data assets Twin and our credit assets in USIS.

When a consumer comes in, we want to be that credit file we pull because it's pulled, because we're going to provide incremental information around the eligibility for that consumer. Because remember in auto and in mortgage, but I'll use auto example, a consumer comes in, their credit is super important. But many mortgage auto loans require income verification in certain income levels in order to qualify for that auto loan. Knowing that up front in the early stages of that consumer interaction is super valuable and only Equifax can provide it. As I mentioned, we'll likely have a solution for personal loans, and as an old credit card guy I know the value of combining income with credit score even in a credit card space. So the power we have now is having those data assets Twin and our credit assets in USIS.

Andrew Nicholas: Auto and in mortgage but I'll use Auto example, a consumer comes in their credit is super important but.

Speaker Change: Many mortgage auto loans require income verification and certain income levels in order to.

Andrew Nicholas: Many mortgage auto loans require income verification and certain income levels in order to.

Speaker Change: Qualify for that auto loan knowing that upfront in the early stages of that consumer interaction is super valuable and only equifax can provide it and as I mentioned, we will likely have a solution for personal loans as an old credit card Guy I know the value of combining income with credit score even in a credit card.

Andrew Nicholas: Qualify for that auto loan knowing that upfront.

Andrew Nicholas: The early stages of that consumer interaction is super valuable and only equifax can provide it and as I mentioned, we will likely have a solution for personal loans as an old credit card Guy I know the value of combining income with credit score even in a credit card space. So the power. We have now is having those.

Speaker Change: Art space. So the power we have now is having those data assets twin and our credit assets and USAF, but having both businesses in the cloud post USA is completing the cloud last summer gives us the ability to really leverage those in the marketplace and drive share and drive revenue and price.

Andrew Nicholas: Data assets.

Andrew Nicholas: And our credit assets at USAF, but having both businesses in the cloud post USA is completing the cloud last summer gives us the ability to really leverage those in the marketplace and drive share and drive revenue and price.

Mark Begor: But having both businesses in the cloud post USIS completing the cloud last summer gives us the ability to really leverage those in the marketplace and drive share and drive revenue and price. Thank you.

But having both businesses in the cloud post USIS completing the cloud last summer gives us the ability to really leverage those in the marketplace and drive share and drive revenue and price.

Andrew Nicholas: Thank you.

Speaker Change: Thank you.

Andrew Nicholas: Thank you.

Speaker Change: Next questions are from the line of Kelsey Xu with Autonomous Research. Please proceed with your questions.

Operator: Next questions are from the line of Kelsey Zhu with Autonomous Research. Please proceed with your questions.

Speaker Change: Hi.

Speaker Change: Hi, Matt.

Speaker Change: Sure.

Andrew Nicholas: Question.

Faiza Alwy: Hi, thanks for taking my question. I wanted to talk about the SSA contract extension that you've announced at the end of Q3. Was wondering if you can talk a little bit more about what with the current level of run rate revenue in 2024 from SSA and they expect a growth in 2025 and beyond. I think the originally announced $500 million for five years does rely on some amount of state further state penetration as well. So just wondering how you're thinking about that in light of CMS changing their.

Kelsey Zhu: Hi, thanks for taking my question. I wanted to talk about the SSA contract extension that you've announced at the end of Q3. Was wondering if you can talk a little bit more about what with the current level of run rate revenue in 2024 from SSA and they expect a growth in 2025 and beyond. I think the originally announced $500 million for five years does rely on some amount of state further state penetration as well. So just wondering how you're thinking about that in light of CMS changing their.

Speaker Change: I want to talk about.

Andrew Nicholas: I wanted to talk about the.

Speaker Change: Contract.

Andrew Nicholas: Contract.

Speaker Change: Yes.

Andrew Nicholas: At the end of Q3.

Speaker Change: With Rod talk a little bit more about what the current level of run rate revenue in 2024.

Andrew Nicholas: With Robert talk a little bit more about what the current level of run rate revenue in 2012.

Speaker Change: And they expect a growth in 'twenty and beyond.

Andrew Nicholas: Okay.

Expected growth in 'twenty and beyond.

Speaker Change: Our recently announced 500 million for five year.

Andrew Nicholas: Our recently announced 500 million for five year.

Speaker Change: Does rely on.

Andrew Nicholas: Why.

Speaker Change: Further penetration as well.

Andrew Nicholas: Further penetration of Wow, I'm, just wondering how youre thinking about that right.

Speaker Change: Wondering how you're thinking about that right.

Speaker Change: Sure Matt.

Matt: Yes, Matt.

Speaker Change: Yes.

Yes.

Speaker Change: Yes. This particular contract with SSA has a federal contracts. So it's not one that's done like CMS, where the states deliver that service in the states.

Matt: Yes. This particular contract with SSA has a federal contracts. So it's not one that's done like CMS, where the states deliver that service in the states.

Mark Begor: Yeah, this particular contract with SSA is a federal contract. So it's not one that's done like CMS where the states deliver that service, and the states, you know, use the data at the local agency level, and as you point out, the customer for us in CMS is really the agency at the state level. In this case of CMS, this is a federal contract that's used for disability benefits eligibility that are delivered directly at the federal level. And it's really used to authenticate, you know, the individual recipient's eligibility to continue receiving that Social Security disability income. If they have a change in income, then it changes their benefits eligibility. So you know, that's a contract that you know we've had in place in the past.

Speaker Change: Use the data at the local agency level and as you point out the customer for us and CMS is really the agency at the state level and the case of CMS. This is a federal contract that's used for disability benefits eligibility that are delivered directly at the federal level and it's a really used to authenticate.

Matt: Use the data at the local agency level as you point out the customer for us and CMS is really the agency at the state level in the case of CMS. This is a federal contract that's used for disability benefits eligibility.

Matt: Our delivered directly at the federal level, and it's a really used to authenticate.

Speaker Change: The the individuals' recipients.

Matt: <unk>.

The individuals recipients eligibility to continue receiving that social security disability income if they have a change in income than.

Speaker Change: Eligibility to continue receiving that social security disability income if they have a change in income.

Speaker Change: Then it changes their benefits eligibility so.

Matt: And then it changes their benefits eligibility so.

Speaker Change: That's a contract that we've had in place in the past we extended the contract in September.

Matt: That's a contract that.

Matt: We've had in place in the past we extended the contract in September.

Mark Begor: We extended the contract in September, you know, with higher prices in it, and that's what I mentioned is going to give us benefits as we go into 2025. Thanks.

We extended the contract in September, you know, with higher prices in it, and that's what I mentioned is going to give us benefits as we go into 2025. Thanks.

Speaker Change: With the higher prices in it and Thats, what I mentioned is going to give us benefits as we go into into 2025.

Matt: With the higher prices in it and Thats, what I mentioned is going to give us benefits as we go into 2025.

Speaker Change: Thanks.

Thanks.

Speaker Change: I was also wondering.

Matt: I would love to have.

Speaker Change: Bob.

Faiza Alwy: I was also wondering if you have any updated thoughts on sizing the incremental record additions from the Workday partnership or just in general, how should we think?

Kelsey Zhu: I was also wondering if you have any updated thoughts on sizing the incremental record additions from the Workday partnership or just in general, how should we think? About record growth in 2025?

Matt: Brian.

Matt: Incremental record additions from the.

Speaker Change: Medical record additions from the partnership.

Matt: Sure.

Speaker Change: In general how should we think about record gross and 25.

Matt: How should we think about record gross and 25.

Trevor Burns: About record growth in 2025?

Speaker Change: Yes, we don't.

Matt: Yes, we don't as you know, we typically don't discuss any of our partners workdays unique because we both announced it last September.

Mark Begor: Yeah, we don't, as you know, we typically don't discuss any of our partners. Workday is unique because we both announced it last September. So we just highlight the fact that we have that one, so we don't talk about what specific partner record additions in. We have over 60 partners and, as I said, we added 14 last year plus Workday, including three of those 15 in the fourth quarter. Record additions were very strong last year. 20 million records up 12%. That's higher than what we expect over the long term. But record additions have been quite strong over the last five years above long term for EWS. We think about record additions of being in the kind of 3% to 4% kind of range. So very strong years.

Speaker Change: We typically don't discuss any of our partners workdays unique because we both announced it last September.

Speaker Change: So we just highlight the fact that we have that one so we don't talk about what specific partner record additions and we have over 60 partners and as I said, we added 14 last year, plus workday, including three of those 15 in the fourth quarter.

Matt: So we just highlight the fact that we have that one so we don't talk about what specific partner record additions and we have over 60 partners and as I said, we added 14 last year, plus workday, including three of those 15 in the fourth quarter.

Speaker Change: Record additions were very strong last year $20 million records up 12%, that's higher than what we expect over the long term, but record additions have been quite strong over the last five years above our long term for AWS, we think about record additions being in the kind of three 4% kind of range. So.

Matt: Additions were very strong last year 20 million records up 12%.

Matt: That's higher than what we expect over the long term, but record additions have been quite strong over the last five years above our long term for AWS. We think about record additions are being in the kind of three 4% kind of range. So.

Speaker Change: Very strong years.

Matt: Three strong years of positive for 2025, as we have a lot of visibility around three partners. We added in the fourth quarter. Those records didn't come on yet and we have partners. We added in the second half they were still Onboarding records and as I mentioned earlier, we are partners. We added 2345 years ago, where we're still adding records when they get a new client.

Speaker Change: Positive for 2025, as we have a lot of visibility around three partners. We added in the fourth quarter. Those records didn't come on yet and we have partners. We added in the second half they were still Onboarding records and as I mentioned earlier, we have partners. We added 2345 years ago, where we're still adding records when they get a new client those become new records, but.

Mark Begor: The positive for 2025 is we have a lot of visibility around the three partners we added in Q4. Those records didn't come on yet. We have partners we added in the second half. They were still onboarding records. As I mentioned earlier, we have partners we added two, three, four, five years ago where we're still adding records. You know, when they get a new client, those become new records. But typically we have, you know, pockets of records, given the structure of their technology or databases, that we're still onboarding to Equifax, even from partners that are a couple of years ago. So, you know, that's a big part of our visibility around records when we look forward a quarter or through a year like 2025.

The positive for 2025 is we have a lot of visibility around the three partners we added in Q4. Those records didn't come on yet. We have partners we added in the second half. They were still onboarding records. As I mentioned earlier, we have partners we added two, three, four, five years ago where we're still adding records. You know, when they get a new client, those become new records. But typically we have, you know, pockets of records, given the structure of their technology or databases, that we're still onboarding to Equifax, even from partners that are a couple of years ago. So, you know, that's a big part of our visibility around records when we look forward a quarter or through a year like 2025.

Matt: Those become new records, but.

Matt: Typically we have pockets of records given the structure of their technology or databases that were still onboarding to equifax even for partners that are a couple of years ago. So that's a big part of our visibility.

Speaker Change: We have pockets of records given the structure of their technology or databases that were still onboarding to equifax even for partners that are a couple of years ago. So that's a big part of our visibility.

Speaker Change: Around records, when we look forward a quarter or through a year like 2025, and then we also have.

Matt: Around records, when we look forward a quarter or through a year like 2025, and then we also have a list of a set of.

Speaker Change: List of a set of.

Mark Begor: And then we also have a list of, you know, a set of potential partners that we've been talking to for a year, two years, three years that are not with Equifax today that we're looking to bring on board like the 15 we added last year. And then as a reminder, a little under 50% of our records come from our direct relationships through our employer business. And as we grow i9 clients or UC clients, they're bringing in records there also. So it's a multifaceted approach. We have one leader and one team. It drives record additions. That was a change we made a year ago and it's paid off in 2024 with the kind of focus from having a dedicated leader giving the obvious benefit or value of adding records. So we've got a big focus on that.

And then we also have a list of, you know, a set of potential partners that we've been talking to for a year, two years, three years that are not with Equifax today that we're looking to bring on board like the 15 we added last year. And then as a reminder, a little under 50% of our records come from our direct relationships through our employer business. And as we grow i9 clients or UC clients, they're bringing in records there also. So it's a multifaceted approach. We have one leader and one team. It drives record additions. That was a change we made a year ago and it's paid off in 2024 with the kind of focus from having a dedicated leader giving the obvious benefit or value of adding records. So we've got a big focus on that.

Speaker Change: Of potential partners that we've been talking to for a year two years three years that are not with equifax today that we're looking to bring on board like the 15, we added last year and then as a reminder, a little under 50% of our records come from our direct relationships through our employer business and as we grow <unk> clients or UC clients that we're bringing.

Matt: Potential partners that we've been talking to for a year two years three years that are not with equifax today that we're looking to bring on board like the 15, we added last year and then as a reminder, a little under 50% of our records come from our direct relationships through our employer business and as we grow <unk> clients or UC clients that we're bringing in Rex.

Speaker Change: And records there also so it's a <unk>.

Matt: <unk>. They're also so it's a multifaceted approach we have one leader and one team that drives record additions that was a change we made a year ago and it's paid off in 2024 with the kind of focus from having a dedicated leader given the obvious benefits of our value adding records.

Multifaceted approach, we have one leader and one team that drives record additions that was a change we made a year ago and it's paid off in 2024 with the kind of focus from having a dedicated leader, giving the obvious benefit that are value, adding records. So we've got a big focus on that so we were expecting.

Matt: We've got a big focus on that so we were expecting.

Mark Begor: We are expecting record growth in 2025 that is aligned with the growth kind of frameworks we laid out for the year for EWS.

Speaker Change: Record growth in 2000, 2025 that is aligned with the growth.

Matt: Record growth in 2000, 2025 that is aligned with the growth kind of frameworks, we laid out for the year for AWS.

We are expecting record growth in 2025 that is aligned with the growth kind of frameworks we laid out for the year for EWS.

Speaker Change: The framework, we laid out for the year for AWS.

Speaker Change: Thanks, a lot.

Matt: Thanks, a lot.

Faiza Alwy: Thanks a lot.

Kelsey Zhu: Thanks a lot.

Speaker Change: The next question is from the line of Scott <unk> with Wolfe Research. Please proceed with your question.

Speaker Change: The next questions are from the line of Scott <unk> with Wolfe Research. Please proceed with your question.

Operator: The next questions are from the line of Scott Wurtzel with Wolfe Research. Please proceed with your questions.

Matt: Okay.

Speaker Change: Hey, guys. Good morning, just one question from me when we think about the guidance for dws revenue growth and sort of in the context of your medium term framework that color on records growth was helpful. But maybe if you can frame sort of the kind of pricing and penetration contribution to growth for this year that youre expecting relative to the long.

Speaker Change: Hey, guys. Good morning, just one question from me.

John Gamble: Hey guys, good morning.

Scott Wurtzel: Hey guys, good morning. Just one question from me. When we think about the guidance for EWS revenue growth and sort of in the context of your medium term framewor that color on records growth was helpful. But maybe if you can frame sort of the kind of pricing and penetration contribution to growth, growth for this year that you're expecting relative to the long-term growth framework.

Mark Begor: Just one question from me. When we think about the guidance for EWS revenue growth and sort of in.

Matt: When we think about the guidance for AWS revenue growth sort of in the.

Speaker Change: In the context of your medium term framework back color on records growth was helpful. But maybe if you can frame sort of the kind of pricing and penetration contribution to growth for this year that youre expecting relative to the long term growth framework. Thanks.

John Gamble: The context of your medium term framework.

Mark Begor: That color on records growth was helpful.

John Gamble: But maybe if you can frame sort.

Mark Begor: Of the kind of pricing and penetration contribution to growth, growth for this year that you're expecting relative to the long-term growth framework. Yeah, we don't, as you know, we don't talk about price in any of our businesses but you know, we can be clear that we take price up every year in all of our businesses, including EWS. I think we've said many times we have, you know, more pricing, you know, advantage if you will, because the uniqueness of what we deliver with EWS and Twin than we do in other parts of Equifax. Penetration will be a positive for us in 2025 in EWS. We expect new product rollouts to also be a positive. They've been over indexing our 10% goal for growth, almost four years at EWS and we expect again very strong over 10% vitality.

Speaker Change: Term growth framework.

Speaker Change: Yes, we don't as you know.

Matt: Yes, we don't as you know we don't.

Speaker Change: We don't talk about price in any of our businesses, but we can be clear that we take price up every year and all of our businesses, including AWS.

Matt: Talk about price in any of our businesses, but we can be clear that we take price up every year and all of our businesses, including AWS.

Mark Begor: Yeah, we don't, as you know, we don't talk about price in any of our businesses but you know, we can be clear that we take price up every year in all of our businesses, including EWS. I think we've said many times we have, you know, more pricing, you know, advantage if you will, because the uniqueness of what we deliver with EWS and Twin than we do in other parts of Equifax. Penetration will be a positive for us in 2025 in EWS. We expect new product rollouts to also be a positive. They've been over indexing our 10% goal for growth, almost four years at EWS and we expect again very strong over 10% vitality.

I think we've said many times, we have more pricing.

Matt: I think we've said many times, we have more pricing.

Speaker Change: Advantage, if you will because the uniqueness of what we deliver with AWS and twin than we do in other parts of Equifax penetration will be a positive for us in 2025 in AWS, we expect new product Rollouts to also be a positive.

Matt: Advantage, if you will because of the uniqueness of what we deliver with AWS and twin than we do in other parts of Equifax penetration will be a positive for us in 2025 in AWS, we expect new product Rollouts to also be a positive.

Speaker Change: They have been over indexing, our 10% goal for gosh, almost four years at Dws, we expect again very strong over 10% vitality. So the continued rollout of new products as you pointed out records as an important pillar on the ability to grow in that space.

Matt: They have been over indexing, our 10% goal for gosh, almost four years and we expect again very strong over 10% vitality. So the continued rollout of new products as you point out records as an important pillar on the ability to grow in that space.

Mark Begor: So, the continued rollout of new products, as you point out, records is an important pillar on the ability to grow in that space. And then penetration, you know, we just have large verticals with a lot of room to grow, and we're principally competing, as you know, against manual verifications, you know, whether it's a verification of employment with a background screener, verification of income with a government agency, you know, in auto, where there's still penetration opportunities, you know, so those are some of the areas where our teams are focused on.

So, the continued rollout of new products, as you point out, records is an important pillar on the ability to grow in that space. And then penetration, you know, we just have large verticals with a lot of room to grow, and we're principally competing, as you know, against manual verifications, you know, whether it's a verification of employment with a background screener, verification of income with a government agency, you know, in auto, where there's still penetration opportunities, you know, so those are some of the areas where our teams are focused on.

Speaker Change: And then penetration.

Matt: And then penetration.

Speaker Change: Have large verticals with a lot of room to grow and we're principally competing as you know against manual verifications, whether its a verification of employment with a background screener verification of income with a government agency.

Matt: Have large verticals with a lot of room to grow and we're principally competing as you know against manual verifications, whether its a verification of employment with a background screener verification of income with a government agency.

Speaker Change: Auto where theres still penetration opportunities. So those are some of the areas where our teams are focused on.

Matt: Auto where theres still penetration opportunities. So those are some of the areas where our teams are focused on.

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

Operator: That's helpful. Thank you. Our next questions are from the line of Ashish Sabadra with RBC Capital Markets. Please proceed with your questions.

Scott Wurtzel: That's helpful. Thank you.

Scott Wurtzel: Our next questions are from the line of Ashish Sabadra with RBC Capital Markets. Please proceed with your questions.

Speaker Change: Our next questions are from the line of Ashish <unk> with RBC capital markets. Please proceed with your question.

Speaker Change: Hi, This is Steven on for Ashish.

Speaker Change: Hi, This is Steven on for Ashish. Thanks for taking our question just a follow up to that last question are you seeing any I know you are not commenting on pricing are you seeing any.

Trevor Burns: Hi, this is David on for Ashish. Thanks for taking our question.

Ashish Sabadra: Hi, this is David on for Ashish. Thanks for taking our question. Just to follow up to that last. Are you seeing any, I know you're not commenting on pricing, but are you seeing any competitive dynamic shifts related to the First Advantage and Sterling merger? Thank you.

Speaker Change: A question just a follow up to that last question are you seeing any I know you are not commenting on pricing are you seeing any.

Mark Begor: Just to follow up to that last.

Trevor Burns: Are you seeing any, I know you're not commenting on pricing, but are you seeing any competitive dynamic shifts related?

Speaker Change: Dynamic shifts related to the first advantage in Sterling.

Speaker Change: <unk> dynamic shifts related to the FERC advantage in Sterling.

Mark Begor: To the First Advantage and Sterling merger? Thank you. Yeah, we don't talk about specific customers. As you know, we have a great relationship with Sterling and a great relationship with First Advantage. And you know, we do with the other, you know, background screeners. We view them as strategic partners, and you know, we have all kinds of relationships with them whether it's, you know, verification of employment. As you know, we have an education solution, we sell incarceration data to them, new products that we're working to deliver, you know, to them. So, you know, don't want to talk about specific impacts, but you know, we have very strong partnerships with the two you mentioned as well as the rest of the industry. Thank you.

Speaker Change: Murder. Thank you.

Speaker Change: Thank you.

Speaker Change: Yes, we don't talk about specific customers as you know we have a great relationship with Sterling and a great relationship with first advantage.

Mark Begor: Yeah, we don't talk about specific customers. As you know, we have a great relationship with Sterling and a great relationship with First Advantage. And you know, we do with the other, you know, background screeners. We view them as strategic partners, and you know, we have all kinds of relationships with them whether it's, you know, verification of employment. As you know, we have an education solution, we sell incarceration data to them, new products that we're working to deliver, you know, to them. So, you know, don't want to talk about specific impacts, but you know, we have very strong partnerships with the two you mentioned as well as the rest of the industry.

Speaker Change: And we do with the other <unk>.

Speaker Change: And we do with the other background screeners, we view them as strategic partners.

Speaker Change: Background screeners, we view them as strategic partners.

Speaker Change: We have all kinds of relationships with them, whether it's <unk>.

Speaker Change: We have all kinds of relationships with them, whether it's a verification.

Speaker Change: Verification of employment as you know we've been education solution, we sell incarceration data to them.

Speaker Change: Mission of employment as you know we've been education solution, we sell incarceration data to them.

Speaker Change: Products that were working to deliver to them. So.

Speaker Change: New products that we're working to deliver to them. So.

Speaker Change: We don't want to talk about specific impacts, but we have very strong partnerships with our with the two you mentioned as well as the rest of the industry.

Speaker Change: Don't want to talk about specific impacts, but we have very strong partnerships with our with.

Speaker Change: The two you mentioned as well as the rest of the industry.

Speaker Change: Yes. Thank you.

Speaker Change: Thank you.

Ashish Sabadra: Thank you.

Speaker Change: Our next questions are from the line of Matt Oneill with Ft Partners. Please proceed with your questions.

Operator: Our next questions are from the line of Matt O'Neill with FT Partners. Please proceed with your questions.

Matt Oneill: Yes, hi, Thank you so much for taking my question.

Mark Begor: Yes, hi.

Matt O'Neill: Yes, hi. Thank you. So much for taking my question. Just curious, going back to the talent and labor area, any incremental comments on verticals, employers, sort of size or types or public, private where some of the conservatism or weakness is most noted. Then, while I fully understand not commenting on price, I guess just with the mortgage score price rolling through last month, just curious if there is anything of note there, if that's been a smooth process. Thank you so much.

Toni Kaplan: Thank you.

Matt Oneill: Just curious going back to the talent and labor area.

Mark Begor: So much for taking my question. Just curious, going back to the talent and labor area, any incremental comments on verticals, employers, sort of size or types or public, private where some of the conservatism or weakness is most noted. Then, while I fully understand not commenting on price, I guess just with the mortgage score price rolling through last month, just curious if there is anything of note there, if that's been a smooth process.

Matt Oneill: Just curious going back to the talent and labor area any any incremental comments on.

Matt Oneill: Any incremental comments on.

Matt Oneill: Verticals employers sort of size or types of Republic, private where were some of the conservatism or weaknesses as most noted.

Matt Oneill: Verticals employers sort of size or types of Republic, private where were some of the conservatism or weaknesses isn't those noted.

Matt Oneill: Then why I fully understand not commenting on price I guess is with the mortgage floor price rolling through last month.

Matt Oneill: Then why I fully understand not commenting on price I guess is with the mortgage scores price rolling through last month.

Matt Oneill: Just curious if there is anything of note there if that's been a smooth process. Thank you so much.

Matt Oneill: Just curious if there is any anything of note there if that's been a smooth process. Thank you so much.

Matt Oneill: The first one on hiring and remember also in Texas, and Onboarding, where we're selling our <unk> solutions.

Trevor Burns: Thank you so much.

Mark Begor: Yeah, the first one on hiring, and remember, it also impacts us in onboarding where we're selling i9 solutions. You know, if there's less new employees, there's less background screens, there's less i9. So clearly an impact. And you know, you use the term conservatism; we're telling you what trends are. You know, when we talk with our customers, it's very broad based. You know, there's a mode; it seems to be kind of coming into the election and post election that companies are keeping a tight belt around hiring as they think about their budgets and plans for 2025 as they are concerned about what's going to be the impact in Washington. The whole tariff conversations create a lot of angst with lots of customers about what's going to happen.

Matt Oneill: As less new employees theres less background screens theres less <unk>, so clearly an impact and you used the term conservatism. We're telling you what trends are when we talk with our customers.

Matt Oneill: Very broad based you know theres a mode it seems to be kind of coming into the election and post election.

Matt Oneill: Very broad based.

Matt Oneill: It seems to be kind of coming into the election and post election.

Matt Oneill: <unk> are keeping a tight belt.

Matt Oneill: Companies are keeping a tight belt.

Round hiring.

Matt Oneill: As they think about their budgets and plans for 2025 as they are concerned about whats going to be the impact in Washington, the whole tariff conversations create a lot of angst with lots of customers about what's going to happen I think you've seen the impact on consumer confidence that likely is impacting lots of customers when they think about what.

Mark Begor: I think you've seen the impact on consumer confidence that likely is impacting lots of customers when they think about what kind of investments around people and resources. But it's been surprising to us, like mortgage, that the hiring activity declined so meaningfully in the latter half of the quarter. Kind of post the election, companies are kind of sitting on the sidelines to see how is this all going to play out. And when that happens, you just don't hire a lot of people, and that clearly impacts us. Sorry, the second half of your question was, I think, on the supplier price increase that went through. What was the question? Yeah, just, you know, if there was anything to note on how that's flowing through in the market or if it's been, you know, fairly, you know, received as expected and nothing.

I think you've seen the impact on consumer confidence that likely is impacting lots of customers when they think about what kind of investments around people and resources. But it's been surprising to us, like mortgage, that the hiring activity declined so meaningfully in the latter half of the quarter. Kind of post the election, companies are kind of sitting on the sidelines to see how is this all going to play out. And when that happens, you just don't hire a lot of people, and that clearly impacts us. Sorry, the second half of your question was, I think, on the supplier price increase that went through. What was the question? Yeah, just, you know, if there was anything to note on how that's flowing through in the market or if it's been, you know, fairly, you know, received as expected and nothing.

Matt Oneill: Kind of investments around people and resources, but it is.

Matt Oneill: What kind of investments around people and resources, but it's.

Matt Oneill: It's been surprising to us like mortgage debt.

Matt Oneill: That the hiring activity declined so meaningfully in the latter half of the quarter kind of post the election. It's companies are kind of sitting on the sidelines to see where how.

Matt Oneill: The hiring activity.

Matt Oneill: Klein so meaningfully in the latter half of the quarter kind of post the election. It's companies are kind of sitting on the sidelines to see where how.

Matt Oneill: How is this all going to play out and when that happens you just don't hire.

Matt Oneill: A lot of people and that's clearly clearly impacts us.

Matt Oneill: And sorry, the second half of your question was I think on the supplier pricing.

Matt Oneill: And I'm sorry, the second half of your question was I think on.

Matt Oneill: The supplier pricing.

Matt Oneill: It went through and.

Matt Oneill: It went through.

Matt Oneill: And what was the question.

Matt Oneill: Yes, just.

Matt Oneill: If there was anything to note on how that flowing through in the market or if its been fairly.

Matt Oneill: Received as expected.

Matt Oneill: Yes, I think received as expected is probably the right way to describe it nobody likes a price increase.

Yes, I think receipt as expected is probably the right way to describe it nobody likes the price increase.

Mark Begor: Yeah, I think received as expected is probably the right way to describe it. Nobody likes a price increase, and you know, a price increase of that size is challenging. But we did mention that, you know, there's some change in behavior around the shopping process where historically a mortgage originator might have pulled three credit files from all three credit bureaus in that shopping process. Some changes going to a single pull or a dual pull and then pulling the three later on in the process. That's likely driven by the cost of the credit file. And that's why we're focused, that's why we're focused on how do we differentiate our credit file. And you know, we're quite energized about, you know, our ability to add those twin indicators to it that you know, we would expect would drive, you know, share and revenue.

Yeah, I think received as expected is probably the right way to describe it. Nobody likes a price increase, and you know, a price increase of that size is challenging. But we did mention that, you know, there's some change in behavior around the shopping process where historically a mortgage originator might have pulled three credit files from all three credit bureaus in that shopping process. Some changes going to a single pull or a dual pull and then pulling the three later on in the process. That's likely driven by the cost of the credit file. And that's why we're focused, that's why we're focused on how do we differentiate our credit file. And you know, we're quite energized about, you know, our ability to add those twin indicators to it that you know, we would expect would drive, you know, share and revenue.

Matt Oneill: Price increase of that size is challenging.

Matt Oneill: But.

Matt Oneill: But we did mention that there is some change in behavior around the shopping process, where historically.

Matt Oneill: We did mention that there is some change in behavior around the shopping process, where historically.

Matt Oneill: A mortgage originator might've poll free credit files from all three credit bureaus in that shopping process, some changes going to a single poll.

A mortgage originator might've pulled free credit files from all three credit bureaus in that shopping process, some changes going to a single poll.

Matt Oneill: Or a dual pool and then pulling the three later on in the process.

Matt Oneill: Or dual pool, and then pulling the three later on in the process.

Matt Oneill: That's likely driven by the cost of.

Matt Oneill: It is likely driven by the cost of the.

Matt Oneill: The credit file.

The credit file.

Matt Oneill: Understood and that's why we're focused that's why.

Matt Oneill: That's why we're focused on how do we differentiate our credit file and we're quite energized about.

Matt Oneill: Our ability to add those twin indicators to with it.

Matt Oneill: We would expect would drive.

Matt Oneill: We would expect would drive share and revenue for us.

Matt Oneill: Share in revenue for us, having something that is differentiated from our competitors.

Matt Oneill: Having something that is differentiated from our competitors.

Mark Begor: For us, having something that is differentiated from our competitors makes a lot of sense. Yep. Thank you.

For us, having something that is differentiated from our competitors makes a lot of sense. Yep. Thank you.

Speaker Change: Makes a lot of sense. Thank you.

Matt Oneill: Makes a lot of sense.

Matt Oneill: <unk>.

Matt Oneill: Thank you.

Speaker Change: The next question is from the line of Simon Collins with Redburn Atlantic. Please proceed with your questions.

Speaker Change: Next question is from the line of Simon Collins with Redburn Atlantic. Please proceed with your questions.

Trevor Burns: Thank you.

Matt O'Neill: Thank you.

Operator: The next question is from the line of Simon Clinch with Redburn Atlantic. Please receive your questions.

Simon Collins: Hi, Thanks for taking my question.

Trevor Burns: Hi, thanks for taking my question.

Simon Clinch: Hi, thanks for taking my question. Got two questions. First of all, just wondering if you could just walk through the outperformance that we've seen in EWS Mortgage just over. The last four quarters, we've seen certainly weaker contribution from pricing and mix as you've talked about before. But that's still sort of pervasive today, despite easier comparisons, and as well as twin records growth on top of that I was wondering how we should think about that portion going forward from here?

Simon Collins: Two questions first I was just wondering if you could just walk through the outperformance that we've seen in UWS mortgage just over the last few quarters we've seen.

Simon Collins: Two questions first I was just wondering if you could just walk through the outperformance that we've seen in UWS mortgage just at the last few quarters, we've seen weaker.

Mark Begor: Got two questions. First of all, just wondering if you could just walk through the outperformance that.

Trevor Burns: We've seen in EWS Mortgage just over.

Simon Collins: We.

Mark Begor: The last four quarters, we've seen certainly weaker contribution from pricing.

Simon Collins: <unk>.

Simon Collins: Contribution from pricing and mix as you've talked about cool, but thats still sort of pervasive today.

Simon Collins: Contribution from pricing and mix as you've talked about before but that still sort of pervasive today.

Trevor Burns: Mix as you've talked about before. But that's still sort of pervasive today, despite easier comparisons, and as well as.

Simon Collins: <unk> easier comparisons.

Simon Collins: By easier comparisons.

Simon Collins: And as long as your records growth I was hoping that so I was wondering how we should think about that portion going forwards.

Mark Begor: Twin records growth on top of that.

Trevor Burns: I was wondering how we should think about that portion going forward from here?

Simon Collins: That's okay.

Simon Collins: So.

Simon Collins: So youre, referring to the performance of mortgage revenue relative to underlying inquiries. When you say is that what youre asking about AWS AWS, yes.

Simon Collins: <unk> to the performance of mortgage revenue relative to underlying inquiries. When you say is that what youre asking about AWS and AWS.

John Gamble: So you're referring to the performance of mortgage revenue relative to underlying inquiries. When you say, is that what you're asking about? Yes.

John Gamble: So you're referring to the performance of mortgage revenue relative to underlying inquiries. When you say, is that what you're asking about?

Speaker Change: Yeah actually I think the records growth contribution.

Simon Collins: Yeah actually I think the records growth contribution.

Simon Clinch: Yes.

Mark Begor: And if I strip the records growth.

Speaker Change: Yes, we think it's we think it's actually strengthened as we've gone through the year right. We feel relatively good about the way about the performance. We've seen in terms of adding records, which is the biggest driver right and our ability to outperform the underlying inquiry market. So we feel very good about about how it's how it's progressed during the year.

Simon Collins: We think it's actually strengthened as we've gone through the year right. We feel relatively good about the way about the performance we've seen in terms of adding records, which is the biggest driver in our ability to outperform the underlying inquiry market. So we feel very good about about how it's how it's progressed during the year.

John Gamble: Contribution, we think it's actually strengthened as we've gone through the year.

Mark Begor: Right.

John Gamble: We feel relatively good about the way, about the performance we've seen in terms of adding records, which is the biggest driver.

Mark Begor: Right.

John Gamble: In our ability to outperform the underlying inquiry market. So we feel very good about how it's progressed during the year.

Speaker Change: From it improved during the year.

Simon Collins: Calling from it improved during the year very nicely during the entire year and we ended up double digit the fourth quarter. So so we think the performance is good and it's all driven by heavily driven by what Mark talked about which is the tremendous success. We had this year on boarding new records right. So so and as we go into next year that will be the driver again right. So our ability to continue to.

Mark Begor: You know, it's gone from it. It improved during the year.

Speaker Change: Very nicely during the entire year and we ended up double digit the fourth quarter. So so we think the performance is good and it's all driven by heavily driven by what Mark talked about which is the tremendous success. We had this year on boarding new records right. So so and as we go into next year that will be the driver again right. So our ability to continue to successfully board New records, which we feel very good.

John Gamble: Yeah, very nicely during the entire year, and we ended up double-digit in the fourth quarter. So we think the performance is good, and it's all driven by, I mean heavily driven by what Mark talked about, which is the tremendous success we had this year in onboarding new records.

Mark Begor: Right.

John Gamble: So, and as we go into next year, that will be the driver again. Right. So, our ability to continue to successfully onboard new records, which we feel very good about, is what's going to allow us to continue to perform well relative to whatever the mortgage market does.

Simon Collins: That's really board New records, which we feel very good about.

Speaker Change: <unk>.

Speaker Change: Is what's going to allow us to continue to perform well relative to whatever the mortgage market does.

Simon Collins: Is what's going to allow us to continue to perform well relative to whatever the mortgage market to us.

Speaker Change: Mind, you I know this makes sense, but.

Simon Collins: Mind, you I know this makes sense, but.

Mark Begor: Remind you, I know this makes sense, but you know, not every record that's added as a mortgage customer, you know, there's, as you know, a smaller portion of the population in the United States owns a home and will participate in the mortgage space. Generally they're, you know, near prime, and prime customers. We're adding records that are call it subprime customers or lower income consumers. And those records are super valuable in auto loans. They're super value in personal loans, and they're really super valuable in government. And the beauty of EWS is that, you know, every record we add now, given the demographics of the different verticals we participate in, have value, you know, and generally multiple value going forward. So it's a really powerful model on records in addition to records, you know, in the mortgage space, we do take a price.

Speaker Change: Not every record that's added as a mortgage customer.

Simon Collins: Not every record is added as a mortgage customer.

Speaker Change: There is a smaller portion of the population of the United States owns a home and will participate in the mortgage space generally there.

Simon Collins: There is a smaller portion of the population of the United States owns a home and will participate in the mortgage space generally there.

Speaker Change: Near Prime and prime customers we're.

Simon Collins: Near Prime and prime customers we're.

Speaker Change: We're adding records that are call. It subprime customers are lower income consumers in those records are super valuable and auto loans are supervalu in personal loans and they are really super valuable in government and the beauty of AWS is that.

Simon Collins: We're adding records that are call. It subprime customers are lower income consumers and those records are super valuable and auto loans are supervalu in personal loans, and they're really super valuable in government and the beauty of AWS is that.

Speaker Change: Every record we add now.

Simon Collins: Every record we add now.

Speaker Change: Given the demographics of our.

Simon Collins: Given the demographics of our.

Speaker Change: The different verticals, we participate in and have value.

Simon Collins: The different verticals, we participate in and have value.

Speaker Change: And generally multiple value.

Simon Collins: And generally multiple value.

Speaker Change: Going forward so.

Simon Collins: Going forward so.

Speaker Change: It's a really powerful model on records. In addition to records in the mortgage space, we do take a price we do rollout new products, which we rolled some new products out in the second half of last year at AWS and we got some new products rolling out in 2025 like the twin indicator that we talked about that will be.

Simon Collins: It's a really powerful model on records. In addition to records in the mortgage space, we do take a price we do rollout new products, which we rolled some new products out in the second half of last year at AWS and we got some new products rolling out in 2025 like the twin indicator that we talked about that will be.

Mark Begor: We do roll out new products, which we rolled some new products out in the second half of last year in EWS, and we've got some new products rolling out in 2025, like the Twin indicator that we talked about; that'll be a, you know, positive for Equifax revenue.

We do roll out new products, which we rolled some new products out in the second half of last year in EWS, and we've got some new products rolling out in 2025, like the Twin indicator that we talked about; that'll be a, you know, positive for Equifax revenue.

Speaker Change: Positive for Equifax revenue.

Simon Collins: Positive for Equifax revenue.

Speaker Change: Okay. That's that's helpful. And then just on the point about the twin indicated I know you've had a few questions on this already but when I'm thinking about the indicators that youre going to bundle with credit fall is that one going to be available only to customers.

Speaker Change: Okay. That's that's helpful. And then just on the point about the twin indicated I know you've had a few questions on this already but when I'm thinking about the indicators that youre going to bundle with the credit fall is that one going to be available only to customers.

Operator: Okay, that's, that's helpful.

Simon Clinch: Okay, that's, that's helpful. Just on the point about the twin indicator, I know, I know you've had A few questions on this already, but when I'm thinking about the indicator that you're going to bundle with the credit file, is that one going to be? Available only to customers of the twin of EWS verifications, first and foremost, and then secondarily, how are you going to balance? I mean, how do you balance the risk of reducing the value of records from EWS by providing that indicator in the credit file?

Mark Begor: Just on the point about the twin.

Trevor Burns: Indicator, I know, I know you've had.

Mark Begor: A few questions on this already, but.

Trevor Burns: When I'm thinking about the indicator that you're going to bundle with the credit.

Mark Begor: File, is that one going to be?

Trevor Burns: Available only to customers of the twin.

Speaker Change: The twin of AWS, Verifications first and foremost and then secondarily how are you going to balance is how did you balance the risk.

Speaker Change: The twin of AWS Verifications.

Mark Begor: Of EWS verifications, first and foremost, and.

Speaker Change: Almost and then secondarily how are you going to balance is how did you balance the risk.

Trevor Burns: Then secondarily, how are you going to balance? I mean, how do you balance.

Speaker Change: <unk>.

Mark Begor: The risk of reducing the value of records from EWS by providing that indicator in the credit file? No, that's a great question. You know, in the mortgage space, you know, most mortgage originators, I'd say the vast majority of mortgage originators use twin. So, you know, they're customers. Now auto, there's pockets of customers that don't. So that'll be an opportunity. But we'll make this credit file with the twin indicators available to all customers. Because even if they're doing a manual verification, which is a very small portion in mortgage, and call it a larger portion in auto, knowing up front that Mark's employed when they're in the shopping process with Mark in a mortgage or auto application is very valuable.

Speaker Change: Reducing the value holds.

Speaker Change: Reducing the value.

Speaker Change: Records from AWS, while providing that indicator in the credit file.

Speaker Change: Records from AWS, providing that indicator in the credit file.

Speaker Change: It's a great question and the mortgage space.

Speaker Change: It's a great question and no.

Mark Begor: No, that's a great question. You know, in the mortgage space, you know, most mortgage originators, I'd say the vast majority of mortgage originators use twin. So, you know, they're customers. Now auto, there's pockets of customers that don't. So that'll be an opportunity. But we'll make this credit file with the twin indicators available to all customers. Because even if they're doing a manual verification, which is a very small portion in mortgage, and call it a larger portion in auto, knowing up front that Mark's employed when they're in the shopping process with Mark in a mortgage or auto application is very valuable.

Speaker Change: Mortgage space.

Most mortgage originators I'd say the vast majority of mortgage originators used twin. So there are customers now auto there is pockets of customers that don't so that'll be an opportunity, but we'll make this credit file with between indicators available to all customers because even if theyre doing a manual verification, which is a very small.

Speaker Change: <unk> mortgage originators I'd say the vast majority of mortgage originators used twin so there are customers now auto.

Speaker Change: Pockets of customers that don't so that'll be an opportunity, but we'll make this credit file with between indicators available to all customers because even if theyre doing a manual verification, which is a very small portion in mortgage and call. It a larger portion in auto.

Speaker Change: Portion in mortgage and call it a larger portion in auto.

Speaker Change: Knowing upfront that marks employed.

Speaker Change: Knowing upfront that marks employed when they're in the shopping parts process with mark in a mortgage or auto application is very valuable and we're going to be very careful as you might imagine around giving.

Speaker Change: When they are in the shopping parse process with Mark in a mortgage or auto application is very valuable and we're going to be very careful as you might imagine around giving.

Mark Begor: We're going to be very careful, as you might imagine, around giving, you know, it's not slivers of information, but giving important information up front that helps in the shopping process, but being very balanced around the fact that we want to protect that full pull that happens later on. It's very deep levels of data. We have 50 different attributes on the full thin credit report. It's got trended data going back 12 months, 24 months, 36 months. That's not what we're anticipating put on up front on the mortgage shopping or auto shopping credit file, what that originator or F&I individual at a dealer needs. Is Mark employed? It might be. Where is Mark working? It might be an average of Mark's income over the last 12 months.

We're going to be very careful, as you might imagine, around giving, you know, it's not slivers of information, but giving important information up front that helps in the shopping process, but being very balanced around the fact that we want to protect that full pull that happens later on. It's very deep levels of data. We have 50 different attributes on the full thin credit report. It's got trended data going back 12 months, 24 months, 36 months. That's not what we're anticipating put on up front on the mortgage shopping or auto shopping credit file, what that originator or F&I individual at a dealer needs. Is Mark employed? It might be. Where is Mark working? It might be an average of Mark's income over the last 12 months.

Speaker Change: Is that slivers of information, but giving important information upfront that helps in the shopping process, but being very balanced around the fact that we want to protect that full poll that happens later on.

Very deep levels of data, we have 50 different attributes on the full twin credit report, it's got trended data going back 12 months 24 months 36 months, that's not what we're anticipating put on upfront on the mortgage shopping or auto shopping credit file what debt originator.

Speaker Change: Very deep levels of data, we have 50 different attributes on the full twin credit report, it's got trended data going back 12 months 24 months 36 months, that's not what we're anticipating put on upfront on the mortgage shopping or auto shopping credit file what debt originator.

Speaker Change: Originator or or F&I.

Speaker Change: Individual at a dealer needs is.

Speaker Change: Is mark employed it might be whereas mark working it might be.

Speaker Change: An average of Mark's income over the last 12 months just some some snippets. If you will that are super valuable in that shopping process to really separate our consumer that maybe couldnt qualify.

Mark Begor: Just some snippets, if you will, that are super valuable in that shopping process to really separate a consumer that maybe couldn't qualify for that auto loan or mortgage. So do you want to work on that with that consumer or help steer what kind of products to put in front of that consumer by having that additional information? Because remember, a credit score which comes with today is really what you get in a shopping process is a credit score. And a credit file really just gives information around someone's propensity to repay their new loan based on their past behavior, but it has zero information about their ability to repay. They might have a decent credit score.

Just some snippets, if you will, that are super valuable in that shopping process to really separate a consumer that maybe couldn't qualify for that auto loan or mortgage. So do you want to work on that with that consumer or help steer what kind of products to put in front of that consumer by having that additional information? Because remember, a credit score which comes with today is really what you get in a shopping process is a credit score. And a credit file really just gives information around someone's propensity to repay their new loan based on their past behavior, but it has zero information about their ability to repay. They might have a decent credit score.

Speaker Change: For that auto loan or mortgage so do you want to work on that with that consumer.

Speaker Change: Or help steer what kind of products to put in front of that consumer by having that additional information because remember our credit score which comes with today is really what you get in a shopping processes, a credit score and a credit file really just gives information around someone's.

Speaker Change: Propensity to repay their new loan based on their past behavior, but it has zero information about their ability to repay they might have a decent credit score, but they are out of work.

Speaker Change: You don't have visibility to that so that's the kind of thing we want to deliver upfront. We think it will differentiate our credit file and deliver more value to our customers in their workflows and then as I mentioned twice now protect.

Trevor Burns: But they're out of work.

Mark Begor: You don't have visibility to that. So that's the kind of thing we want to deliver up front. We think it'll differentiate our credit file and deliver more value to our customers in their workflows. And then, as I mentioned twice now, protect the actual credit files. There's a full credit file typically pulled in many of these processes a second or third time. But also protect the twin reports that are pulled either once or twice or sometimes three times in those workflows dependent upon the vertical.

Speaker Change: Actually credit files is a full credit file typically pulled in many of these processes are second or third time, but to also protect that protect the twin.

Speaker Change: Actually credit files that are full credit file typically pulled in many of these processes are second or third time, but to also protect that protect the twin.

Speaker Change: <unk> reports that are pulled.

Speaker Change: Reports that are pulled.

Speaker Change: Either once or twice or sometimes three times in those workflows dependent upon the vertical.

Speaker Change: That's great. Thanks, so much.

Operator: That's great. Thanks so much. Thank you. The next question is from the mind of Arthur Truslove with Citi. Please proceed with your questions.

Simon Clinch: That's great. Thanks so much.

Speaker Change: Thank you. The next question is from the line of Arthur <unk> with Citi. Please proceed with your question.

Operator: Thank you. The next question is from the mind of Arthur Truslove with Citi. Please proceed with your questions.

Speaker Change: Thanks, everyone.

Speaker Change: Couple for me.

Mark Begor: Thanks everyone.

Arthur Truslove: Thanks everyone. A couple for me. So first one, you've said that your margin in USIS can go up from 34.5% in 2024 to 35.5% in 2025. I was just wondering why this increase was so small. I mean, I guess given the cloud-based cost savings, you might have expected, you know, 300 basis points or so. So just wondered, you know, what, what was missing there. Second question, you've made clear on this call over the last month or two, the situation in mortgage and hiring has clearly deteriorated, and it seems like this is probably the key reason to you guiding down at this point. I just wanted to confirm as well your mortgage forecast of -12% on volumes, that that is just a function of what you've seen in the last few weeks, isn't it? And that obviously factors in mortgage rates at 7%. So, can you just confirm that I've understood that properly?

Speaker Change: So first one.

Jeff Meuler: A couple for me. So first one, you've said that your margin in USIS can go up from 34.5% in 2024 to 35.5% in 2025. I was just wondering why this increase was so small. I mean, I guess given the cloud-based cost savings, you might have expected, you know, 300 basis points or so. So just wondered, you know, what, what was missing there. Second question, you've made clear on this call over the last month or two, the situation in mortgage and hiring has clearly deteriorated, and it seems like this is probably the key reason to you guiding down at this point. I just wanted to confirm as well your mortgage forecast of -12% on volumes, that that is just a function of what you've seen in the last few weeks, isn't it? And that obviously factors in mortgage rates at 7%.

Speaker Change: You said that Youll mountain and <unk> can go up from 34, and a half of southern 24 to 25, 5% and 20% I thought I was just wondering why this increase was our small.

Speaker Change: You said that Youll mountain and <unk> can go up from 34, and a half of southern 24% to 35.5% and 12% thought I was just wondering why this increase was our small.

Speaker Change: Given the cloud base cost savings you might have expected 300 bps or so.

Speaker Change: So just wanted to.

Speaker Change: What was missing that.

Speaker Change: Second question.

Speaker Change: My time on this call, but over the last month or so the situation in mortgage and hiring.

Speaker Change: Clearly deteriorated.

Speaker Change: It seems like this is probably the key reasons, so youre guiding down at this point I just wanted to confirm as well.

Speaker Change: It seems like this is probably the key reason so youre guiding down at this point I just wanted to confirm as well.

Speaker Change: Your mortgage forecast of minus 12% on volumes.

Speaker Change: It's just a function of what you've seen in the last few weeks and that obviously factored in mortgage Reits at 7%. So can you just confirm I understood that properly.

Speaker Change: It's just a function of what you've seen in the last few weeks and that obviously factored in mortgage Reits at 7%. So can you just confirm if I understood that properly.

Jeff Meuler: So, can you just confirm that I've understood that properly?

Speaker Change: Yes, and the second 100% what we've seen over the last six seven weeks has been a sharp decline surprising and the depth of it but a reality.

Speaker Change: Yes, and the second one 100% what we've seen over the last six seven weeks has been a sharp decline surprising and the depth of it but a reality.

Mark Begor: Yeah. The second one, 100%, you know, what we've seen over the last six, seven weeks has been a sharp decline, surprising in the depth of it, but a reality, you know, in what we're seeing as far as activity as rates went over 7%. And I think you'd have to lay in there not only the rate shock of that, but also perhaps consumer confidence, you know, and what they're reading in the paper about, you know, what's happening, all the activity in Washington. And just to be clear, again, you know, we'll update this again when we see changes in it, you know, for sure. We'll give you an update in April when we report our first quarter earnings over the last 10 years. This is how we forecasted mortgage because, you know, we're not economists, we can't forecast interest rate increases or decreases.

Speaker Change: What we're seeing as far as activity as rates went over 7% and I think you'd have to lay in there not only the rate shock of that but also perhaps consumer confidence and what theyre reading in the paper about what's happening while the activity in Washington, and just to be clear again.

Speaker Change: What we're seeing as far as activity as rates went over 7% and I think you'd have to lay in there not only the rate shock of that but also perhaps consumer confidence and what they are reading in the paper about what's happening while the activity in Washington, and just to be clear again.

Speaker Change: We will update this again when we see changes in it for sure will give you an update in April when we report our first quarter earnings.

Speaker Change: Over the last 10 years. This is how we forecasted mortgage because we're not economists, we cant forecast interest rate increases or decreases, but we've been super clear with you that.

Mark Begor: But we've been super clear with you that, you know, if this improves, that'll expand our revenue and expand our margins in our EPS if either there's a change in confidence in consumer activity or the rates come down slightly. And as we mentioned earlier on the call in September, August, September last year we saw rates come down into the sixes and we saw an increase in activity. So we know there's a correlation between where rates are and what consumer behavior is going to be. John, you want to take the first one on margins.

But we've been super clear with you that, you know, if this improves, that'll expand our revenue and expand our margins in our EPS if either there's a change in confidence in consumer activity or the rates come down slightly. And as we mentioned earlier on the call in September, August, September last year we saw rates come down into the sixes and we saw an increase in activity. So we know there's a correlation between where rates are and what consumer behavior is going to be. John, you want to take the first one on margins.

Speaker Change: This improves.

Speaker Change: That will expand our revenue and expand our margins and our EPS.

Speaker Change: Either there is a change in confidence in consumer activity or the rates come down slightly and as we mentioned earlier on the call in September August September last year, we saw rates come down into the sixes and we saw.

Speaker Change: The increase in activity. So we know there is a correlation.

Speaker Change: <unk> between where rates are and what consumer behavior.

Speaker Change: <unk> is going to be John you want to take the first one on margins and USAF margins again, it's very similar to the Equifax margins right. So we're absolutely seeing savings from the cost reduction for moving to the cloud that's driving driving improvement in margins.

Speaker Change: <unk> is going to be John you want to take the first one on margins and USAF margins again, it's very similar to the Equifax margins right. So we're absolutely seeing savings from the cost reduction from moving to the cloud that's driving driving improvement in margins.

Operator: Sure.

Arthur Truslove: Sure.

John Gamble: USIS margins again, it's very similar to Equifax margins.

Mark Begor: Right.

John Gamble: So we're absolutely seeing savings from the cost reduction from moving to the cloud. That's driving improvement in margins. Our growth rate is lower in 2025 than in our long term model, and obviously we have very high variable margins. So what we're seeing right is that with the growth rate higher inside the long term model for USIS being 6% to 8%, you would see much larger margin expansion in terms of a percentage basis. One of the things we are fighting against, which we've all been talking about for quite some time, obviously we get some revenue lift from our mortgage supplier price increase, but it also is margin dilutive. So we can hold margins with our own price increases along with it. But it isn't really accretive to our margin profile because of the way the price increases pass through.

Speaker Change: Our growth rate is lower in 2025, then our long term model.

Speaker Change: Our growth rate is lower in 2025, then and our long term model.

Speaker Change: And obviously, we have very high variable margin. So what we're seeing right is that is that with with the growth rate higher inside the long term model for USAF being 6% to 8% you would see much you would see much larger margin expansion in terms of a percentage basis. One of the things we are fighting against which we've all been talking about for quite some time, obviously, we get some red.

Speaker Change: And obviously, we have very high variable margins. So what we're seeing right is that is that with with the growth rate higher inside the long term model for USAF being 6% to 8% you would see much you would see much larger margin expansion in terms of a percentage basis. One of the things we are fighting against which we've all been talking about for quite some time, obviously, we get some rev.

Speaker Change: A new lift from our from our mortgage supplier price increase but it also is margin dilutive so weak.

Speaker Change: We can hold margins with our own price increases along with it but it isn't really accretive to our to our margin profile.

Speaker Change: Because of the way the price increase was passed through so.

Speaker Change: Because of the way the price increase was faster so.

Speaker Change: Beneficial on the revenue side not beneficial on the margin percentage side, but beneficial on the margin dollar side.

John Gamble: So beneficial on the revenue side, not beneficial on the margin percentage side, but beneficial on the margin dollar side.

So beneficial on the revenue side, not beneficial on the margin percentage side, but beneficial on the margin dollar side.

Speaker Change: Thank you just one follow up for me if it's okay.

Speaker Change: Just one follow up for me if that's okay.

Mark Begor: Thank you.

Arthur Truslove: Thank you. Just one follow-up from me if it's okay. You're obviously forecasting margins down in Workforce Solutions, and you're saying part of that is bringing on TWN partners. Just give an idea of how many basis points bringing on the TWN partners costs and then whether that then comes back in subsequent years. Thank you.

Jeff Meuler: Just one follow-up from me if it's okay. You're obviously forecasting margins down in Workforce Solutions, and you're saying part of that is bringing on TWN partners. Just give an idea of how many basis points bringing on the TWN partners costs and then whether that then comes back in subsequent years. Thank you.

Speaker Change: You're obviously forecasting margins down in workforce solutions, and you're saying part of that is bringing on.

Speaker Change: Tw on partners.

Speaker Change: Could you just give an idea of.

Speaker Change: How many basis points.

Speaker Change: How many basis points, bringing on the PWM partners costs went up.

Speaker Change: On the PWM partners costs, and then went up but then it comes back in subsequent yes. Thank you.

Speaker Change: It comes back in subsequent yes. Thank you.

Speaker Change: Yes. This is onboarding costs or its one time costs, we will have incremental people involve technology costs.

Speaker Change: Yes. This is onboarding costs or one time costs, we will have incremental people involve technology costs.

Mark Begor: Yeah, this is onboarding costs. So it's one-time costs. We'll have incremental people involved, technology costs, you know, it's just, you know, a little bit bigger than normal because we added 15 partners last year. So, you know, as I said, some of those second half additions are still being onboarded, so there's just additional activity. And yeah, it does go away. You know, it's. I think there's just a larger amount now because of our success last year of adding partners. John. Right.

Speaker Change: It's just a little bit bigger than normal because we added 15 partners last year. So as I said some of those second half additions are still being on boarded so there's just additional activity and yes. It does go away.

Speaker Change: I think there's just a larger amount now because of our success last year of adding partners genre, we pay incentives to partner support basket right. So as that happens that it ends up being margin dilutive in the period in which it occurs.

Speaker Change: I think there's just a larger amount now because of our success last year about partners genre, we pay incentives to partner support faster rate. So as that happens that it ends up being margin dilutive in the period in which it occurs.

Operator: Yeah.

Yeah.

John Gamble: We pay incentives to partners to board faster.

Mark Begor: Right.

John Gamble: So as that happens, it ends up being margin dilutive in the period which it occurs.

Speaker Change: Thank you.

Thank you.

Operator: Thank you. Thank you. Our next questions come from the line of George Tong with Goldman Sachs. Please receive your question.

Arthur Truslove: Thank you.

Operator: Thank you. Our next questions come from the line of George Tong with Goldman Sachs. Please receive your question.

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

Speaker Change: Thank you our next questions come from the line of George Tong with Goldman Sachs. Please proceed with your question.

Speaker Change: Hi, Thanks, good morning with.

George Tong: Hi, Thanks, Good morning, with respect to your margin outlook can you elaborate on key drivers do you have internally that could drive upside to your 2025 EBITDA margin guide or would you say your outlook is relatively fixed given the external conditions.

Speaker Change: With respect to your margin outlook can you elaborate on the key drivers do you have internally that could drive upside to your 2025 EBITDA margin guide or would you say your outlook is relatively fixed given external conditions.

Mark Begor: With respect to your margin outlook, can?

George Tong: With respect to your margin outlook, can you elaborate on key drivers you have internally, that could drive upside to your 2025 EBITDA margin guide? Or would you say your outlook is relatively fixed given external conditions?

John Gamble: You elaborate on key drivers you have.

Mark Begor: Internally, that could drive upside to your 2025 EBITDA margin guide? Or would you say your outlook is relatively fixed given external conditions?

Speaker Change: Obviously, there's a lot of drivers internally on the way to drive revenue faster the biggest ones. Marc has already talked about right, which is which is our ability to continue to drive more revenue growth rate. Obviously, our long term margin expansion of 50 basis points. A year is driven by the fact that we have extremely high variable margins across the vast majority of our.

Speaker Change: Obviously, there's a lot of drivers internally on the way to drive revenue faster the biggest ones Mark's already talked about right, which is which is our ability to continue to drive more revenue growth rate. Obviously, our long term margin expansion of 50 basis points. A year is driven by the fact that we have extremely high variable margins across the vast majority of our <unk>.

John Gamble: Obviously there's a lot of drivers internally on the way to drive revenue faster. The biggest ones Mark's already talked about.

Trevor Burns: Right.

John Gamble: Which is our ability to continue to drive more revenue growth. Right. Obviously, our long-term margin expansion of 50 basis points a year is driven by the fact that we have extremely high variable margins across the vast majority of our product portfolio. So the faster we can, as we drive to introduce more products, new products, faster it drives incremental revenue benefit. As we continue to put more AI and ML into our products, it drives better scores, higher growth rates, more data contribution, and more data usage by our customers. So that the biggest thing we can do is obviously drive revenue faster, and then we'll continue to work to drive down costs more rapidly. One of the ways we do that obviously is executing on our cloud migrations. As that occurs, we can continue to take out costs more quickly.

Speaker Change: <unk> portfolio. So the faster we can as we drive to introduce more products new products faster it drives incremental revenue benefit as we continue to put more AI and ml into our products. It drives better scores higher growth rates more data contribution and more data usage by our customers. So so the biggest thing we can do is obviously <unk>.

Speaker Change: <unk> revenue faster and then we will continue to work to drive down costs more rapidly one of the ways. We do that obviously is executing on our on our cloud migrations as that occurs we can continue to take out costs more quickly as we execute those effectively that will drive costs out and we'll continue to manage costs.

John Gamble: As we execute those effectively, that'll drive costs out and we'll continue to manage costs prudently as we go through 2025. But in every year going forward, the.

As we execute those effectively, that'll drive costs out and we'll continue to manage costs prudently as we go through 2025. But in every year going forward, the.

Speaker Change: Prudently as we go through 2025, but in every year going forward.

Speaker Change: Prudently as we go through 2025, but in every year going forward for the principal.

Speaker Change: Principal.

Speaker Change: Upside I guess, Georgia, where youre going to principal upside for our revenue margin EPS and free cash flow drive.

Mark Begor: Principal upside, I guess, George, is where you're going. The principal upside for our revenue margin, EPS, and free cash flow drive framework for 2025 is going to be what happens to mortgage and hiring markets if they get better. We're not going to invest more costs from that margin expansion or revenue expansion. We're going to drop that through. And that's. You've seen the impact that it's had on us from what you expected, meaning the Street expected for 2025, you know, it's quite substantial because they're all incremental margins. Yep. Makes a lot of sense. And then with respect to your cloud transformation savings, any color you could provide on the quarterly phasing of savings in.

Speaker Change: Framework for 2025 is going to be what happens to mortgage and hiring markets if they get better.

Speaker Change: We're not going to invest more cost from that margin expansion of revenue expansion, we're going to drop that through and thats.

Speaker Change: <unk> seen the impact that it's had on us from what you expected, meaning the street expected for 2025.

Speaker Change: Quite substantial because theyre all incremental margins.

Speaker Change: Yes.

Speaker Change: And then with respect to your cloud transformation savings any color you can provide on the quarterly phasing of savings in 2025, and perhaps 2026.

Speaker Change: And then with respect to your cloud transformation savings any color you could provide on the quarterly phasing of savings in 2025, and perhaps 2026.

John Gamble: 2025 and perhaps 2026?

George Tong: 2025 and perhaps 2026?

Speaker Change: Yes, I would think about them as much smaller when you think about us being close to 85% in the cloud and the big increase in <unk> was a very substantial cloud completion, we got big savings from that in 2024 that also comp into 2025.

Speaker Change: Yes, I would think about them as much smaller when you think about as being close to 85% in the cloud and the big increase like in <unk> was a very substantial cloud completion, we got big savings from that in 2024 that also comp into 2025.

Mark Begor: Yeah, I would think about them as much smaller. You know, when you think about us being close to 85% in the cloud and the biggest increase like in USIS was a very substantial, you know, cloud completion, we got big savings from that in 2024 that also comp into 2025. You know, they're going to be smaller. We haven't communicated, you know, what they are. You know, when you think about Spain completing in Q1, for example, and you know, some of the other completions we expect this year, those are in our guidance, you know, so they're in our cost plans, you know, what they expect to be. But you shouldn't think about them as being anywhere near the magnitude of what you saw last year, and actually in some of the prior years.

Speaker Change: They're going to be smaller we haven't communicated what they are when you think about Spain completing in the first quarter for example, and some of the other completions. We expect this year those are in our guidance. So they are in our cost plans with or expect to be but you shouldnt think about them as being anywhere near the magnitude of what you saw last year.

Speaker Change: They're going to be smaller we haven't communicated what they are when you think about Spain completing in the first quarter for example, and some of the other completions. We expect this year those are in our guidance. So they are in our cost plans with their expected, but you shouldnt think about them as being anywhere near the magnitude of what you saw last year.

Speaker Change: And actually in some of the prior years.

Speaker Change: Very helpful. Thank you.

John Gamble: Very helpful.

George Tong: Very helpful. Thank you.

Mark Begor: Thank you.

Speaker Change: Thank you.

Speaker Change: Our final question is from the line of Shlomo Rosenbaum with Stifel. Please proceed with your question Hi. This is.

Speaker Change: Our final question is from the line of Shlomo Rosenbaum with Stifel. Please proceed with your question.

Operator: Thank you. Our final question is from the line of Shlomo Rosenbaum with Stifel. Please proceed with your questions. Hi, this is Adam for Shlomo, just one for me.

Operator: Thank you. Our final question is from the line of Shlomo Rosenbaum with Stifel. Please proceed with your questions.

Speaker Change: Hi, this is that on a personal note just one from me what are you hearing from banks in terms of macro expectations.

Speaker Change: I don't want for Shlomo just one from me what are you hearing from banks in terms of macro.

Shlomo Rosenbaum: Hi, this is Adam for Shlomo, just one for me. What are you hearing from banks in terms of macro expectations and how the various areas of credit are performing? Thanks.

John Gamble: What are you hearing from banks in?

Speaker Change: Expectations and how the various areas of credit are performing thanks.

Speaker Change: Expectations and how the various areas are performing.

Mark Begor: Terms of macro expectations and how the various areas of credit are performing?

Trevor Burns: Thanks.

Speaker Change: Yeah, So I think broadly.

Speaker Change: Yes, so I think broadly.

Mark Begor: Yeah, so I think broadly our customers, banks, fintechs here and around the globe with unemployment low and employment high, that's a positive. So that clearly is one is consumers are working, they generally get paid their bills. I think we've seen that impact on inflation, which is still high in relative terms and impacting that subprime consumer, their delinquencies have increased. So you've seen some already repositioning, if you will, around underwriting there and the level of capacity that fintechs want to take on. But you're still seeing very strong focus in that space. The subprime players are focused on growing their originations there and no real change on the broader set of the credit spectrum. And our customers are financially strong. You know, when you think about the banks, the fintechs, you know, you don't see issues there.

Speaker Change: Our customers banks fin techs here and around the globe with unemployment low unemployment high that's a positive. So that clearly is one is consumers are working they generally get pay their bills I think we've seen that impact on inflation, which is still.

Speaker Change: Our customers banks fin techs here and around the globe with unemployment low unemployment high that's a positive. So that clearly is one is consumers are working they're generally get pay their bills I think we've seen that impact on inflation, which is still high.

Speaker Change: For in relative terms and impacting that subprime consumer.

Speaker Change: Delinquencies have increased.

Speaker Change: So <unk> seen some already repositioning if you will around underwriting there and the level of capacity that principally fintech I want to take on but you're still seeing.

Speaker Change: <unk> seen some already repositioning if you will around underwriting there and the level of.

Speaker Change: Capacity that principally fintech I want to take on but you're still seeing.

Speaker Change: Very strong kind of focus in that space to subprime players.

Speaker Change: Strong kind of focus in that space to subprime players.

Speaker Change: We are focused on growing the originations there and no real change on.

Speaker Change: We are focused on growing the originations there and no real change on the.

Speaker Change: The broader set of the credit spectrum.

Speaker Change: And our customers are financially strong when you think about the banks. The fintech. So you don't see issues there.

Speaker Change: Customers are financially strong when you think about the banks the fintech. So you don't see issues there.

Speaker Change: The other piece of it is around consumer confidence and the impact of higher rates I think we've talked AD nauseum around mortgage.

Mark Begor: The other piece of it, you know, is around consumer confidence, you know, and the impact of higher rates. I think we've talked ad nauseam around mortgage. We've seen an impact in auto where higher rates are either forcing consumers to buy used cars versus new or keep old cars and keep them on the road, meaning not buy that new car or that new used car. So there's clearly been an impact there from what we've seen at higher rates. But broadly, you may be stepping back, I don't think we see a change in 2025 outside of call it mortgage in FI, which we've already talked about, the down 12%, I don't think we see any real change in either customer behavior or consumer behavior as we go into 2025.

The other piece of it, you know, is around consumer confidence, you know, and the impact of higher rates. I think we've talked ad nauseam around mortgage. We've seen an impact in auto where higher rates are either forcing consumers to buy used cars versus new or keep old cars and keep them on the road, meaning not buy that new car or that new used car. So there's clearly been an impact there from what we've seen at higher rates. But broadly, you may be stepping back, I don't think we see a change in 2025 outside of call it mortgage in FI, which we've already talked about, the down 12%, I don't think we see any real change in either customer behavior or consumer behavior as we go into 2025.

Speaker Change: We've seen an impact in auto where higher rates are either forcing consumers to buy used cars versus new or keep old cars and keep them on the road meeting not by that new car that new used cars. So there's clearly been an impact there from what we've seen at higher rates, but broadly maybe stepping back I don't think we see a change in 'twenty five.

Speaker Change: Five outside of call it mortgage and Fi, which we've already talked about the down 12, I don't think we see any real change in either customer behavior or consumer behavior as we go into 2025.

Speaker Change: Thank you.

Speaker Change: At this time I will now turn the floor back to Trevor Burns for closing remarks.

Operator: Thank you at this time. I will now turn the floor back to Trevor Burns for closing remarks.

Trevor Burns: Thanks, everybody.

Speaker Change: Thanks, everybody.

Speaker Change: All of our channels.

Trevor Burns: Thanks everybody. If you have any follow-up questions, please reach out to Molly and myself. Otherwise, have a great day.

Speaker Change: Sure.

Speaker Change: Reach out to Raleigh, and myself otherwise have a great day. Thank you.

Speaker Change: This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation and have a wonderful day.

Mark Begor: Thank you.

Operator: This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Q4 2024 Equifax Inc Earnings Call

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