TransUnion Stock Price, News & Analysis

TransUnion reported strong financial results for Q4 and FY 2021, showing a total revenue of $790 million, up 21% YoY. Net income reached $1,017 million, significantly boosted by a $982 million gain from the sale of its Healthcare business. The company plans to acquire Verisk Financial Services and aims for 9%-12% organic revenue growth in 2022. Debt reduction efforts included extinguishing $640 million in debt related to Sontiq. Adjusted EBITDA was $282 million, reflecting a 14% increase, although margins slightly decreased to 35.8%.

TransUnion is addressing the rise of unemployment insurance fraud impacting millions of Americans, particularly among younger generations. A recent study indicates that 10% of adults experienced digital fraud, with incidents higher among Gen Z (15%) and Millennials (12%). To combat this issue, TransUnion has secured a Blanket Purchase Agreement from the U.S. Department of Labor to enhance identity verification and fraud detection for state unemployment systems. Their TruValidate solution will help streamline claims processing and enhance security.

TransUnion conducted a survey via The Harris Poll revealing a significant shift towards streaming among American TV viewers. The study showed that 70% of respondents engaged with streaming services, with 82% of 18-54 year-olds participating. Viewers expressed a preference for streaming over cable/satellite for high-engagement activities, and advertisements on streaming platforms resonated more with audiences. Challenges remain in the fragmented advertising market, but the data suggests a growing importance for advertisers to adapt to this trend.

TransUnion's Q4 2021 Credit Industry Insights Report reveals robust growth in consumer credit performance across auto, credit card, personal loans, and mortgages. Notably, credit card originations surged 63% YoY, with 20.1 million new accounts, while non-prime originations grew significantly, especially in credit cards (75% YoY increase). Personal loan balances reached an all-time high of $167 billion. Despite a slight rise in delinquency rates, these remain below pre-pandemic levels, bolstering lender confidence as the economy recovers and credit demand normalizes.

TransUnion announced the appointment of Charles E. Gottdiener to its Board of Directors, effective February 1. Gottdiener, former President and CEO of Neustar, will also serve as an Executive Advisor to CEO Chris Cartwright for two months. In addition, Venkat Achanta is promoted to Executive Vice President and Chief Data & Analytics Officer. These changes follow TransUnion's acquisition of Neustar in December 2021, aiming to enhance the company's position in data and analytics capabilities and improve customer experiences in digital commerce.

TransUnion (NYSE: TRU) will release its fourth quarter financial results for the period ending December 31, 2021, on February 22, 2022, at 6:00 a.m. CT. This announcement will coincide with the filing of its 2021 Form 10-K, which will detail acquisitions of Neustar and Sontiq, along with the divestiture of its Healthcare business. A conference call is scheduled for the same day at 8:30 a.m. CT to discuss the results. The press release and live webcast will be accessible via the company’s Investor Relations website.

On January 24, 2022, Equifax (NYSE: EFX), Experian (LON:EXPN), and TransUnion (NYSE:TRU) jointly announced an extension of their pandemic response service to provide consumers with free weekly credit reports through the end of 2022. This initiative aims to assist consumers in managing their financial health amid ongoing economic challenges. The CEOs of the agencies emphasized their commitment to supporting consumers in tracking their financial well-being during these uncertain times, with credit reports playing a critical role in financial decision-making.

The three major U.S. credit reporting agencies—Equifax, Experian, and TransUnion (NYSE:TRU)—are extending their provision of free weekly credit reports to consumers through the end of 2022. Amid ongoing economic challenges from the pandemic, this initiative aims to enhance financial health and enable consumers to manage their credit activity effectively. The agency CEOs stressed their commitment to assisting consumers during these difficult times, emphasizing the importance of easily tracking financial information. For more details, visit annualcreditreport.com.