TransUnion (NYSE:TRU) Q4 2017 Earnings Conference Call - Preliminary Transcript

Feb 13, 2018 • 09:00 am ET


TransUnion (NYSE:TRU) Q4 2017 Earnings Conference Call - Preliminary Transcript


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Good morning and welcome to the TransUnion, Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. Please note, this event is being recorded.

I would like to turn the conference over to Aaron Hoffman. Please go ahead.

Aaron Hoffman

Good morning everyone and thank you for joining us today. I'm joined by Jim Peck, President and Chief Executive Officer; and Todd Cello, Executive Vice President and Chief Financial Officer. We've posted our earnings release on the TransUnion Investor Relations web site this morning.

Our earnings release includes schedules which contain more detailed information about revenue, operating expenses and other items, including certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are also included in these schedules. As a reminder, today's call will be recorded and a replay will be available on the TransUnion web site.

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

So with done, let me turn the time over to Jim. Thanks Aaron. TransUnion closed out a very good year in 2017 with a strong fourth quarter. The growth trends that we experienced throughout the year, continued. For both the full year and the quarter, revenue grew double digits for the total company as well as for USIS and International. Consumer Interactive delivered stronger than expected revenue growth of 6% for the year, and double digits for the fourth quarter.

Adjusted and adjusted EPS both increased significantly for the year, and the quarter. Adjusted EBITDA margin for the full year expanded by more than 100 basis points.

This marks three consecutive years of double digit revenue, adjusted EBITDA and adjusted EPS growth. Over that three year span, adjusted EBITDA margin has expanded by about 400 basis points.

As we have discussed on previous calls, our strategy to deliver this sort of top tier performance from a broad based set of growth drivers, and over this time, our growth has come from a variety of diversified sources, ranging from new products to rapidly growing verticals, to attractive international positions.

In fact, over the past three years, more than 50% of our top line growth has come from new products, growth verticals and emerging markets, and we expect a similar story over the next three years and likely beyond that.

This gives us not only great conviction in the long term durability of our growth trajectory, but the diversification also limits downside risk that can come from overreliance on any one area of the business. A strong performance also makes a