10-KPeriod: FY2021

EQUIFAX INC Annual Report, Year Ended Dec 31, 2021

Filed February 24, 2022For Securities:EFX

Summary

Equifax Inc. reported strong revenue growth of 19% in 2021, reaching $4.92 billion, driven primarily by its Workforce Solutions segment, which saw a 39% increase in revenue. This growth reflects a rebound in economic activity and successful integration of acquisitions, including the significant acquisition of Appriss Insights. The company is actively pursuing its cloud data and technology transformation to enhance innovation and customer experience. Despite the positive revenue trajectory, the company's financial performance continues to be influenced by the lingering effects of the 2017 cybersecurity incident, with ongoing legal settlements and business practice commitments. However, the company demonstrated improved profitability, with operating income increasing significantly year-over-year, and a positive net income attributable to Equifax. Investors should monitor the company's ongoing technology investments and the competitive landscape, as well as the continued resolution of past legal issues.

Financial Highlights

53 data points
Beta

Revenue

$4.92B

Net Income

$744.20M

15.1% Net Margin

EPS (Diluted)

$6.02

Total Assets

$11.04B

Cash & Equivalents

$224.70M

Free Cash Flow

$1.33B

Financial Statements
Beta
Revenue$4.92B
SG&A Expenses$1.32B
Operating Expenses$3.79B
Operating Income$1.14B
Interest Expense$145.60M
Net Income$744.20M
EPS (Basic)$6.11
EPS (Diluted)$6.02
Shares Outstanding (Basic)121.90M
Shares Outstanding (Diluted)123.60M

Key Highlights

  • 1Equifax reported a 19% increase in operating revenue for 2021, reaching $4.92 billion, compared to $4.13 billion in 2020.
  • 2The Workforce Solutions segment was the strongest performer, with revenue up 39% year-over-year, driven by Verification Services and Employer Services.
  • 3Net income attributable to Equifax increased by 43% to $744.2 million in 2021, with diluted earnings per share rising to $6.02 from $4.24 in 2020.
  • 4The company made significant investments in acquisitions during 2021, including the $1.825 billion acquisition of Appriss Insights, to expand its data assets and product offerings.
  • 5Despite improvements, the company continues to manage the financial and operational impacts of the 2017 cybersecurity incident, including a $345 million payment made in January 2022 related to the consumer settlement.
  • 6Equifax is progressing with its cloud data and technology transformation strategy, which involves rebuilding its technology infrastructure for enhanced innovation, scalability, and resilience.
  • 7The company maintained its financial stability, with $224.7 million in cash and cash equivalents and $1.18 billion available under its revolving credit facility as of December 31, 2021.

Frequently Asked Questions

In 2021, Equifax experienced robust financial performance with a 19% increase in operating revenue to $4.92 billion. Net income attributable to Equifax grew by 43% to $744.2 million, and diluted earnings per share improved to $6.02. This growth was largely propelled by the strong performance of the Workforce Solutions segment and strategic acquisitions.

The Workforce Solutions segment showed significant strength, with a 39% revenue increase driven by Verification Services and Employer Services. The U.S. Information Solutions segment saw a more modest 4% revenue growth, primarily due to improvements in core credit decisioning services and financial marketing services, though Mortgage Solutions experienced a slight decline. The International segment also demonstrated solid growth with a 15% revenue increase, benefiting from recovering local economies across various regions.

While the 2017 cybersecurity incident occurred in a prior year, Equifax continues to manage its financial implications. The company made a $345 million payment in January 2022 as part of the consumer settlement. Although significant past legal and settlement costs have impacted prior periods, the company's current operational performance has improved, demonstrating its ability to grow despite these ongoing responsibilities.

Equifax is focused on a 'cloud data and technology transformation' to accelerate innovation, improve customer experience, and enhance system resiliency. The company also actively pursues strategic acquisitions to expand its capabilities and data assets, as demonstrated by the acquisition of Appriss Insights in 2021. These initiatives represent significant investments for future growth and competitive positioning.