TransUnion Stock Price, News & Analysis

TransUnion has launched a new Point-of-Sale suite of solutions aimed at helping consumers using Buy Now Pay Later (BNPL) loans build credit. With 100 million U.S. adults utilizing BNPL loans, this initiative seeks to include such loans in credit reports, aiding financial inclusion. Notably, 43% of point-of-sale applicants are considered subprime. The integration of these loans into credit reporting can enhance access to credit for underserved populations, especially young adults. Over time, the data from BNPL transactions is expected to be incorporated into mainstream credit scoring models.

TransUnion (NYSE: TRU) announced a cash dividend of $0.095 per share for Q4 2021, payable on March 25, 2022, to shareholders on record as of March 10, 2022. This move reflects the company's commitment to returning value to shareholders amidst its global operations across over 30 countries. TransUnion focuses on providing trustworthy information solutions to create economic opportunities and empower individuals, emphasizing its mission of Information for Good®.

VIZIO (NYSE: VZIO) announced the expansion of its Household Connect advertising platform, enhancing cross-device marketing capabilities through a partnership with TransUnion (NYSE: TRU). This update integrates TruAudience® Identity and Data Marketplace, allowing advertisers to reach audiences across 19 million Smart TV households and various mobile devices. The platform has resulted in a 64% increase in viewership for a major cable network and significant improvements in awareness and ad recall, achieving 80% and 90% lifts. Overall, VIZIO's ad tech team has doubled participating brands and raised upfront commitments to over $100 million.

Insurance Shopping Trends: At the end of 2021, property and auto insurance shopping decreased compared to 2020 levels. TransUnion's report highlights a 12.5% drop in auto insurance and a 3.4% decline in property insurance shopping. Rising vehicle prices and COVID-19 impacts led to this slowdown. Despite increased insurance premiums due to severe weather events, fewer consumers engaged in shopping. The housing market cooled, but millennials are expected to remain active in home buying. Future trends indicate potential growth in auto lending but continued challenges in consumer engagement.

TransUnion (NYSE:TRU) has signed a definitive agreement to acquire Verisk Financial Services for $515 million, funded with cash on hand. This acquisition aims to enhance TransUnion’s consumer insights by combining its data with Verisk’s Argus Information & Advisory Services, providing a ‘full wallet view’ of consumer spend. Verisk Financial generated $143 million in revenue and $41 million in Adjusted EBITDA in 2021. TransUnion anticipates revenue growth acceleration post-acquisition, projecting high-single-digit growth in 2023 and low-double-digit growth in 2024. The deal is expected to close in Q2 2022.

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.