Mortgage Market Outlook
Q: How will higher rates impact mortgage business?
A: If rates stay high, we expect the mortgage market to be flat in 2025, as originations remain low. However, as rates eventually decrease to more normal levels, we anticipate a significant tailwind, with mortgage revenue having the opportunity to return to $1.1 billion as we reach 2015-2019 levels.

EWS Guidance Lowered
Q: Why did EWS full-year revenue guidance decrease?
A: We lowered Equifax Workforce Solutions (EWS) revenue growth guidance from 8% to 7%, primarily due to a reduction in Employer Services, particularly lower Employee Retention Credit (ERC) and Work Opportunity Tax Credit (WOTC) revenues. Despite higher mortgage inquiries, we foresee slightly weaker mortgage outperformance driven by customer mix.

Government Vertical Growth
Q: How is the government vertical performing?
A: Our government vertical is performing exceptionally well, with 35% growth in the quarter. It has become our largest vertical in Workforce Solutions. We see strong opportunities with record additions and new contracts, including a $1 billion contract with CMS and a $190 million contract with USDA.

Impact of Higher Rates
Q: How do higher rates affect your business?
A: Higher rates primarily impact our mortgage business, potentially keeping the market flat in 2025. Outside of mortgage, our businesses are performing well at current rates. We're confident in our 8%-12% long-term growth framework, including M&A.

Customer Mix in EWS Mortgage
Q: How is customer mix affecting mortgage outperformance?
A: The 7% mortgage outperformance in EWS was lower than expected due to shifts in customer and channel mix. Some customers with lower pricing had higher volumes, impacting outperformance levels. We've adjusted our outlook assuming this mix continues.

Cloud Migration Impact
Q: What is the impact of cloud migration on margins?
A: Completing our cloud migration from 70% to 90% of revenue in the cloud by year-end will provide margin expansion benefits in 2024 and into 2025. Decommissioning legacy systems will reduce costs, and the cloud enables us to focus fully on growth.

Record Additions and Pipeline
Q: Can you discuss new record additions?
A: We added 4 million records in the quarter and signed a large payroll processor that will contribute 6 million records midyear. With 126 million individuals in our database out of 225 million potential, we have about 100 million to go, providing a long runway for growth. Our pipeline for record additions is very strong.

Margin Expectations
Q: How will margins trend this year?
A: We expect margins to increase as we realize cost reductions from decommissioning major systems in our consumer businesses in North America. Improved revenue mix and higher margins from added records in EWS will also contribute to margin expansion.

Talent Vertical Performance
Q: What's the outlook for the talent vertical?
A: We saw softness in January and February due to tight hiring in white-collar jobs but noted an uptick in March. We expect talent to return to growth as we move through the year. Adding records enhances hit rates, benefiting the talent vertical.

Market Conditions
Q: How are current economic conditions affecting demand?
A: Overall, our customers are operating normally, and we haven't seen significant pullbacks due to economic concerns. We continue to see consistent demand across our non-mortgage businesses, with financial services and identity and fraud performing well.