Equifax Inc (NYSE:EFX). reported a 6% increase in its Q3 2023 revenues on Thursday, reaching $1.319 billion despite a challenging mortgage market that fell by an estimated 29%. The company attributed this growth to the successful execution of strategic priorities and a $210 million spending reduction plan, primarily through its Cloud spending reduction initiative.
The Atlanta-based company also saw non-mortgage organic local currency revenue grow by 7%, with Workforce Solutions experiencing an 11% growth driven by strong government sector performance, generating revenues of $577.2 million. The USIS segment recorded a revenue hike of 7% to $426.0 million, boosted by an 8% increase in B2B non-mortgage revenue and a solid 10% increase in B2B Online non-mortgage revenue.
On top of this, Equifax's international operations reported a total local currency revenue growth of 12%, aided by the recent acquisition of Boa Vista Serviços which expanded the company's presence in the Brazilian market. This acquisition contributed $23 million to the Q3 revenues.
Despite the positive figures, Equifax's net income was slightly down at $162.2 million with a diluted EPS of $1.31, representing a decrease of 2% compared to last year. The company's long-term debt was reported at $5,500.4 million alongside total current liabilities of $1,581.8 million.
Equifax revised its full-year guidance for 2023 down to $5.256 billion in revenue and an adjusted EPS of $6.67 per share, citing impacts from the weaker U.S. mortgage market and foreign exchange fluctuations as key factors behind the revision.
Nevertheless, Equifax remains optimistic about its EFX Cloud and Data transformation strategy, which is expected to drive growth beyond 2023. The company is forecasting a strong 13% non-mortgage revenue growth in Q4 and continues to focus on new product roll-outs and market expansion, as evidenced by a record New Product Vitality Index of 15%.
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