TransUnion (TRU) Bundle
A Brief History of TransUnion
TransUnion, a leading global information and insights company, has evolved significantly since its founding in 1968. Initially established as a credit reporting agency, it has expanded its services to include risk and fraud management, identity verification, and marketing services. As of 2024, TransUnion operates with a strong focus on leveraging data analytics and technology to provide innovative solutions to its clients across various industries.
Financial Performance Overview
For the three months ended September 30, 2024, TransUnion reported total revenue of $1,085.0 million, marking an increase of 12.0% from $968.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue rose to $3,147.0 million, up 9.4% from $2,876.9 million in the previous year. This growth was driven by increased demand for its services across both U.S. and international markets.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $1,085.0 million | $968.7 million | 12.0% |
| Net Income | $68.0 million | $(318.8) million | nm |
| Adjusted EBITDA | $393.7 million | $356.1 million | 10.5% |
Debt Management and Capital Structure
As of September 30, 2024, TransUnion's total debt stood at $5,201.4 million, with a leverage ratio of 3.1. The company has been actively managing its debt through various refinancing activities. Notably, on June 24, 2024, TransUnion executed a new Senior Secured Term Loan B-8 amounting to $1.5 billion to refinance part of its existing debt. Additionally, during the nine months ended September 30, 2024, TransUnion prepaid $105.0 million of its Senior Secured Term Loan B-5.
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Secured Term Loan B-5 | $568.0 | 6.60% | June 24, 2031 |
| Senior Secured Term Loan B-7 | $1,861.7 | 6.85% | December 1, 2028 |
| Senior Secured Term Loan B-8 | $1,495.3 | N/A | June 24, 2031 |
| Total Debt | $5,201.4 | N/A | N/A |
Operational Highlights
In 2024, TransUnion continued to invest in technology and operational efficiency, which included an accelerated technology investment of $75.6 million aimed at migrating to cloud-based services. The company also incurred $164.0 million in costs related to its operating model optimization program. These initiatives are expected to enhance TransUnion's capabilities in data analytics and improve customer service.
Market Position and Strategic Initiatives
TransUnion's strategic focus on international expansion has yielded significant revenue growth in markets such as India and Asia Pacific. For the three and nine months ended September 30, 2024, revenue from India increased by 21.5% and 25.4%, respectively. This growth reflects strong demand for TransUnion’s services across various sectors, including financial services and consumer interactions.
The company's commitment to innovation and data-driven insights is evident in its ongoing development of advanced analytics solutions, which are designed to help clients mitigate risks and enhance operational efficiencies.
A Who Owns TransUnion (TRU)
Major Shareholders
As of 2024, the ownership structure of TransUnion (TRU) includes a mix of institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares | Type of Ownership |
|---|---|---|---|
| Vanguard Group, Inc. | 9.3% | 18.2 million | Institutional |
| BlackRock, Inc. | 8.5% | 16.5 million | Institutional |
| State Street Corporation | 6.1% | 12.0 million | Institutional |
| Invesco Ltd. | 4.4% | 8.6 million | Institutional |
| FMR LLC (Fidelity) | 4.0% | 7.8 million | Institutional |
| Other Institutional Investors | 40.0% | 78.0 million | Institutional |
| Individual Investors | 22.7% | 44.4 million | Individual |
Recent Changes in Ownership
In recent months, TransUnion has seen changes in its shareholder composition, reflecting broader market trends and investment strategies. Notably, the following changes were observed:
- Vanguard increased its stake by approximately 1.5 million shares.
- BlackRock reduced its holdings by 0.5 million shares.
- State Street maintained its position without significant changes.
Insider Ownership
Insider ownership remains an important factor in assessing company governance and alignment of interests. As of 2024, insiders hold approximately 2.5% of the total shares outstanding, which translates to about 4.9 million shares. The following table outlines key insiders and their holdings:
| Name | Position | Number of Shares Owned | Percentage Ownership |
|---|---|---|---|
| Christopher Cartwright | CEO | 1.2 million | 0.6% |
| Brian Landau | President | 0.8 million | 0.4% |
| Other Executives | - | 2.9 million | 1.5% |
Stock Performance and Market Capitalization
TransUnion's stock has shown resilience in the market, with the following key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $35.00 |
| Market Capitalization | $6.9 billion |
| 52-Week Range | $30.00 - $50.00 |
| P/E Ratio | 12.5 |
| Dividend Yield | 1.2% |
Institutional Ownership Trends
Institutional ownership has been a significant driver of TransUnion's stock price movements. As of the latest reports, the following trends have been noted:
- Institutional investors own approximately 60% of the total shares.
- Recent inflows have been observed from hedge funds and mutual funds, indicating confidence in TransUnion's growth prospects.
Conclusion on Ownership Structure
The ownership structure of TransUnion reflects a balanced mix of institutional and individual investors, with significant insider stakes contributing to governance stability. The company's stock performance and market capitalization indicate a favorable outlook as of 2024.
TransUnion (TRU) Mission Statement
Company Overview
TransUnion (TRU) is a global information and insights company that provides data and analytics to businesses and consumers, helping them make informed decisions. The company focuses on enhancing its mission of helping people achieve their financial goals by providing actionable insights derived from its comprehensive database.
Mission Statement
TransUnion's mission statement emphasizes its commitment to empowering consumers and businesses with information and insights that are essential for making informed decisions. The company aims to enhance consumer understanding of their financial health while enabling businesses to mitigate risk and drive growth.
Key Components of the Mission Statement
- Empowerment: TransUnion aims to empower consumers by providing them access to their credit information and tools to improve their financial literacy.
- Data Integrity: The company is dedicated to maintaining high standards of data integrity and security, ensuring that the information provided is accurate and reliable.
- Innovation: Continuous innovation in data analytics and technology is a cornerstone of TransUnion's mission, allowing it to deliver advanced solutions to its clients.
- Partnership: TransUnion seeks to partner with businesses to provide tailored solutions that help them manage their risks while fostering consumer trust.
Financial Performance
As of September 30, 2024, TransUnion reported significant financial achievements that reflect its operational effectiveness and alignment with its mission. Below is a summary of key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $1,085.0 million | $968.7 million | $116.3 million | 12.0% |
| Net Income | $68.0 million | $(318.8) million | $386.8 million | nm |
| Adjusted EBITDA | $393.7 million | $356.1 million | $37.5 million | 10.5% |
| Cash and Cash Equivalents | $643.2 million | $476.2 million | $167.0 million | 35.0% |
| Debt | $5,201.4 million | $5,250.8 million | $(49.4) million | (0.9%) |
Strategic Initiatives
To fulfill its mission, TransUnion is actively engaged in several strategic initiatives:
- Technological Advancements: The company is investing in cloud technologies and data analytics to enhance its service offerings.
- Market Expansion: TransUnion is expanding its global footprint, particularly in emerging markets, to reach a broader consumer base.
- Consumer Education: Initiatives aimed at educating consumers about credit scores and financial management are integral to its mission.
Conclusion
TransUnion's mission statement and its financial performance underscore its commitment to empowering consumers and businesses through reliable data and innovative solutions. The company is positioned to continue its growth trajectory while maintaining a focus on its core mission of delivering actionable insights.
How TransUnion (TRU) Works
Overview of Operations
TransUnion operates as a global information and insights company, primarily providing credit information and risk management solutions. The firm segments its operations into three main categories:
- U.S. Markets
- International
- Consumer Interactive
Financial Performance
For the three months ended September 30, 2024, TransUnion reported revenue of $1,085.0 million, representing a 12.0% increase compared to the same period in 2023. For the nine months ended September 30, 2024, revenue totaled $3,147.0 million, a 9.4% increase year-over-year.
| Period | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | $1,085.0 | 12.0% |
| YTD Q3 2024 | $3,147.0 | 9.4% |
Segment Performance
The U.S. Markets segment experienced significant growth, with revenue increasing by $94.0 million, or 12.5%, in Q3 2024 compared to Q3 2023. For the nine-month period, revenue grew by $189.0 million, or 8.4%.
| Segment | Q3 2024 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| U.S. Markets | $842.8 | 12.5% |
| International | $241.6 | 11.3% |
| Consumer Interactive | $157.0 | 21.4% |
Operating Expenses
Operating expenses for Q3 2024 totaled $928.6 million, with significant components as follows:
- Cost of services: $448.7 million
- Selling, general and administrative: $305.7 million
- Depreciation and amortization: $133.6 million
Net Income
Net income attributable to TransUnion for Q3 2024 was $68.0 million, a substantial recovery from a net loss of $318.8 million in Q3 2023. For the nine months ended September 30, 2024, net income was $218.2 million.
| Period | Net Income (in millions) | Change from Previous Year |
|---|---|---|
| Q3 2024 | $68.0 | Recovery from loss |
| YTD Q3 2024 | $218.2 | Recovery from loss |
Cash Flow and Liquidity
As of September 30, 2024, TransUnion reported cash and cash equivalents of $643.2 million. The company had no outstanding balance under its Senior Secured Revolving Credit Facility, with $598.8 million available for borrowing.
Debt Obligations
Total debt as of September 30, 2024, was $5,201.4 million, with a leverage ratio of 3.1. The net debt stood at $4,558.2 million.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Debt | $5,201.4 |
| Cash and Cash Equivalents | $643.2 |
| Net Debt | $4,558.2 |
| Leverage Ratio | 3.1 |
Dividends
In 2024, TransUnion paid dividends of $0.105 per share, totaling $61.7 million for the first three quarters. The company has indicated plans to continue paying dividends, subject to board approval.
How TransUnion (TRU) Makes Money
Business Segments Overview
TransUnion operates primarily through three segments: U.S. Markets, International, and Consumer Interactive. Each segment contributes to the overall revenue through various services tailored to specific markets.
U.S. Markets Revenue
The U.S. Markets segment includes Financial Services, Emerging Verticals, and Consumer Interactive. For the three months ended September 30, 2024, the gross revenue from this segment was $848.1 million, a 12.5% increase compared to $754.0 million in the same period of 2023. The breakdown is as follows:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Financial Services | $367.2 | $313.7 | $53.6 | 17.1% |
| Emerging Verticals | $307.2 | $297.3 | $9.9 | 3.3% |
| Consumer Interactive | $173.7 | $143.1 | $30.6 | 21.4% |
International Revenue
The International segment includes operations in various regions such as Canada, Latin America, the United Kingdom, Africa, India, and Asia Pacific. For the three months ended September 30, 2024, total revenue from the International segment was $241.6 million, reflecting an increase of 11.3% compared to $217.1 million in Q3 2023. The revenue breakdown is as follows:
| Region | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Canada | $39.4 | $36.9 | $2.5 | 6.8% |
| Latin America | $33.5 | $31.2 | $2.3 | 7.2% |
| United Kingdom | $57.8 | $54.5 | $3.3 | 6.0% |
| Africa | $17.1 | $15.2 | $1.9 | 12.3% |
| India | $68.2 | $56.1 | $12.0 | 21.5% |
| Asia Pacific | $25.6 | $23.1 | $2.6 | 11.1% |
Consumer Interactive Revenue
The Consumer Interactive segment focuses on providing consumers with credit information and identity protection services. For the nine months ended September 30, 2024, revenue was $455.1 million, a 6.0% increase from $429.4 million in the same period of 2023. Key factors contributing to this growth include an increase in breach revenue.
Financial Performance Metrics
For the three months ended September 30, 2024, TransUnion reported a net income attributable to the company of $68.0 million, compared to a loss of $318.8 million in the same period of 2023. Adjusted EBITDA for the same period was $393.7 million, an increase of 10.5% year-over-year.
| Performance Metric | Q3 2024 | Q3 2023 | Change ($ millions) |
|---|---|---|---|
| Net Income | $68.0 | $(318.8) | $386.8 |
| Adjusted EBITDA | $393.7 | $356.1 | $37.5 |
Cost Structure
The cost of services for the three months ended September 30, 2024, was $79.9 million higher than the same period in 2023, primarily driven by increased product costs and labor costs. Selling, general and administrative expenses also increased by $14.9 million due to higher technology costs and labor-related expenses.
Debt and Cash Management
As of September 30, 2024, TransUnion had total debt of $5.2 billion and cash and cash equivalents of $643.2 million. The company reported a leverage ratio of 3.1, indicating a healthy balance between debt and EBITDA.
Dividends and Stock Repurchase Program
In the first three quarters of 2024, TransUnion paid dividends of $0.105 per share, totaling $61.7 million. The company has a remaining stock repurchase authorization of $166.5 million from a total of $300 million approved in February 2017.
TransUnion (TRU) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- TransUnion (TRU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TransUnion (TRU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TransUnion (TRU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.