TransUnion (TRU) Reports 3% Revenue Growth in Q3 2023 Despite Market Softness
TransUnion (NYSE:TRU) reported a 3% increase in revenue for Q3 2023, reaching $969 million.
The company prepaid $75 million in debt during the quarter and plans for additional prepayments in Q4.
Despite a net loss of $400 million, attributed to a $495 million non-cash goodwill impairment expense, adjusted net income was $177 million.
TransUnion revised its 2023 full-year guidance due to moderating growth expectations, projecting 2 to 3 percent revenue growth.
TransUnion (NYSE:TRU) released its Q3 2023 earnings report on October 24, 2023, revealing a 3% increase in revenue, reaching $969 million. Despite facing end-market softness in the U.S. and the U.K., the company managed to grow its revenues, driven by strength in its International and Neustar segments.
Financial Highlights
TransUnion reported a net loss of $400 million for the quarter, compared to a net income of $79 million in Q3 2022. This loss was largely due to a $495 million non-cash goodwill impairment expense for the company's U.K. reporting unit. Despite this, the company's adjusted net income was $177 million, slightly down from $180 million in Q3 2022.
The company's adjusted EBITDA for the quarter was $356 million, a 5% increase compared to the same period in 2022. TransUnion also prepaid $75 million in debt during the quarter, bringing the year-to-date total to $225 million.
Segment Performance
TransUnion's U.S. Markets segment reported a 2% increase in revenue, reaching $634 million. The International segment saw a 12% increase in revenue, reaching $211 million, led by strong growth in India, Canada, and the Asia Pacific region. However, the Consumer Interactive segment reported a 3% decrease in revenue, totaling $143 million.
Revised Full-Year Guidance
TransUnion revised its full-year guidance for 2023 due to moderating growth expectations. The company now expects a 2 to 3 percent revenue growth, led by its International segment. Despite the revised guidance, the company remains focused on delivering innovative solutions to help customers navigate uncertain market conditions.
Looking Ahead
TransUnion's Q3 2023 results reflect the company's resilience in the face of market softness. The company's ability to grow revenues and prepay debt, coupled with its commitment to investing for long-term revenue growth, positions it well for future success. However, the revised full-year guidance indicates that the company is not immune to broader market challenges.
This article first appeared on GuruFocus.
