TransUnion Stock Price, News & Analysis

TransUnion reported a 14% increase in total revenues for Q4 2022, totaling $902 million. However, organic constant currency revenue showed a 2% decline. The net income dropped significantly to $46 million from $1,017 million in Q4 2021, primarily due to a prior year's gain on the disposal of its Healthcare business. Adjusted EBITDA rose 14% to $321 million, indicating resilience despite challenges. For 2023, the company anticipates 3% to 5% revenue growth, emphasizing portfolio diversification and international strength.

Sontiq, a TransUnion company, reported a significant rise in compromised entities due to data breaches in 2022, with a total of 3,495 compromised entities, marking a 45% increase from 2,417 in 2021. The jump is largely attributed to third-party breaches, which accounted for 1,745 of the incidents, reflecting a staggering 220% year-over-year increase. The severity of these breaches, measured by Sontiq's BreachIQ AI algorithm, also increased by 10% in 2022. Sontiq emphasizes the importance of consumers taking swift action when breaches score above 4, as they pose higher risks for identity theft.

TransUnion report reveals insights on mobile sports bettors' financial behaviors

On February 2, 2023, TransUnion (NYSE: TRU) reported that nearly half (49%) of mobile sports bettors reduced discretionary spending in Q4 2022 due to economic concerns. The percentage of consumers engaging in mobile sports betting dropped from 19% in Q2 2022 to 11% in Q4 2022. High-value bettors showed resilience, yet faced financial pressures, with 33% using retirement savings and 44% cutting discretionary spending. As the U.S. economy faces recession fears, operators are advised to maintain engagement with these key market segments. The full report is available in the “Online Sports Betting Study.”

TransUnion's Q4 2022 Quarterly Credit Industry Insights Report reveals that, amidst rising interest rates and inflation, credit use is on the rise. Total credit card balances soared to $930 billion, marking an 18.5% year-over-year increase. Gen Z consumers notably contributed, with bankcard balances up 64% year-over-year. However, there is concern over rising delinquency rates, reaching 2.26% in Q4 2022, indicating potential credit risks. Homeowners are tapping into home equity lines of credit (HELOCs) as originations grew 41% year-over-year. Overall, while credit demand is increasing, the rise in delinquencies may signal challenges ahead for borrowers.

Neustar, a TransUnion company, has launched a new solution for AWS Clean Rooms, enhancing privacy-focused identity resolution and data collaboration. This solution integrates Neustar's identity graph and machine learning capabilities with AWS Clean Rooms, allowing clients to effectively connect and enrich various data sources. By resolving identity fragments, companies can improve match rates and build valuable audience insights. This collaboration aims to empower AWS customers in securely analyzing combined datasets without revealing underlying data. The initiative aligns with TransUnion's mission to facilitate trust in the modern economy.

TransUnion (NYSE: TRU) has made a strategic investment in Bud Financial Limited, a leader in Open Banking, aiming to foster innovation in personal finance. This partnership will enhance income verification processes, especially for consumers with limited credit history. CEO Satrajit Saha emphasized the goal of improving financial inclusion through accurate consumer insights. Bud's platform enhances client onboarding and financial service delivery, aiming to provide affordable lending options. Saha will join Bud's board to support growth, while TransUnion's international president sees opportunities for innovative solutions across markets.

TransUnion (NYSE: TRU) has appointed Linda Zukauckas to its Board of Directors as of January 30, 2023. Zukauckas, an accomplished financial leader, was previously the Chief Financial Officer at Nielsen Holdings and has held numerous executive roles at American Express and Ally Financial. Her expertise in strategy and finance is anticipated to enhance TransUnion's growth and development in data analytics. The board chair, Pamela Joseph, emphasized Zukauckas' leadership as crucial for positioning TransUnion as a global information company.

TransUnion published a global study revealing that new-to-credit consumers (NTC) perform comparably or better than established borrowers. In the U.S., 5.8 million consumers became NTC in 2021, followed by 3.0 million in early 2022, with Gen Z representing 59% of this group. The study indicates that NTC borrowers generally show lower delinquency rates compared to established borrowers within similar credit risk profiles. Convenience is a key factor for NTC borrowers when selecting lenders, and 57% remain loyal to their first lender for subsequent products. Approximately 60% of NTC consumers anticipate needing more credit in the next 3-5 years, highlighting their potential importance for lenders' growth.