TransUnion (NYSE:TRU) Q3 2023 Results Conference Call October 24, 2023 9:30 AM ET

Company Participants

Aaron Hoffman - Senior Vice President

Chris Cartwright - President and Chief Executive Officer

Todd Cello - Executive Vice President and Chief Financial Officer

Conference Call Participants

Kelsey Zhu - Autonomous Research

Faiza Alwy - Deutsche Bank

Jeff Meuler - Baird

Andrew Steinerman - JPMorgan

Heather Balsky - Bank of America

Toni Kaplan - Morgan Stanley

Ashish Sabadra - RBC Capital Markets

Manav Patnaik - Barclays

Andrew Nicholas - William Blair

Operator

Good morning. And welcome to TransUnion's 2023 Third Quarter Earnings Conference Call [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Aaron Hoffman, Senior Vice President. Please go ahead.

Aaron Hoffman

Good morning, everyone, and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer; Todd Cello, Executive Vice President and Chief Financial Officer. We posted our earnings release and slides to accompany this call on the TransUnion Investor Relations Web site this morning. Our earnings release and the accompanying slides include various schedules, which contain more detailed information about revenue, operating expenses and other items as well as certain non-GAAP disclosures and financial measures along with their corresponding reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. Today's call will be recorded and a replay will be available on our Web site. We will also be making statements during this call that are forward-looking. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statements because of factors discussed in today's earnings release and the comments made during this earnings call and in our most recent Form 10-K, Forms 10-Q and other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statement.

With all that, let me turn it over to Chris.

Chris Cartwright

Thanks, Aaron. Let me add my welcome and share our agenda for the call this morning. First, I'll discuss the macroeconomic conditions we're facing and the impact that they had on our business in the third quarter. Then I'll provide an overview of our third quarter financial performance. I'll also review the continued progress we're making with Neustar, accelerating revenue growth and achieving savings targets. I'll wrap up with a short discussion about our approach to managing through a more challenging and uncertain macro environment. Finally, Todd will detail our third quarter results, along with our fourth quarter and full year guidance. Economic conditions softened across several TransUnion markets in the third quarter, most notably in the US and the UK. While US consumers continue to benefit from low unemployment and modest real wage growth, lingering inflation and rising borrowing costs have taken a toll on household finances. Spending has slowed and consumers have largely spent through the excess savings accumulated during COVID. Although demand for credit remains strong despite elevated costs, banks have tightened lending standards due to weakening consumer finances and increasing capital constraints. Recent commentary from lenders supports these observations, noting that cracks have appeared across consumer lending, especially in the lower credit tiers.