EWS Growth Drivers
Q: What will drive EWS growth in Q3 and Q4?
A: EWS growth will be significantly driven by record additions, with several new partners coming online that convert immediately into revenue since inquiries already exist. Seasonal factors such as talent hiring and ACA sign-ups will also contribute to growth. ,

USIS Revenue Outlook
Q: Why is USIS revenue guidance conservative for Q3?
A: USIS is experiencing softening in end markets, notably in auto loans due to higher interest rates reducing consumer demand. While cloud migration distractions will diminish, benefits won't fully materialize until 2025, leading to cautious revenue guidance. ,

Margin Expansion Post-Cloud
Q: Will tech transformation savings expand margins?
A: Yes, cloud transition savings will flow through to expand margins, not be reinvested. Equifax expects to grow at 8%-12% with operating leverage improvement of 50 bps per year. Mortgage market recovery and cloud savings will further enhance margins.

Impact of Interest Rates
Q: How will potential Fed rate cuts affect Equifax?
A: Rate cuts would benefit Equifax, especially in the mortgage vertical, where activity is down 50% from normal levels. Recovery in mortgage inquiries could add up to $1.1 billion in revenue over time. ,

USIS Post-Cloud Acceleration
Q: How confident are you in USIS acceleration after cloud completion?
A: Completing cloud transformation allows USIS to focus on innovation and roll out new products, particularly combining credit data with income and employment data. Benefits are expected in 2025, enhancing customer value and driving market share gains. ,

Talent Segment Growth
Q: What drove strong growth in the Talent segment?
A: Growth was driven by new products like incarceration and education data solutions, and by market penetration in a large TAM, including solutions for hourly background screens and combined data elements for background checks. , ,

Record Addition Strategy
Q: How are record additions contributing to growth?
A: Record additions are a powerful growth lever, immediately generating revenue upon addition as inquiries already exist. Efforts focus on gig workers, 1099 income earners, pensions, and direct employer relationships, driven by a dedicated team. , , ,

Credit Conditions Impact
Q: How are credit conditions affecting business segments?
A: High interest rates are dampening consumer demand in auto loans and mortgages, affecting USIS revenue. Subprime consumers face inflation pressures, but overall consumer strength and credit scores remain positive. , , ,

International Growth
Q: What drove strong organic growth in International, especially LatAm?
A: International growth was propelled by new products and innovation in markets like Argentina and Chile. In Latin America, excluding Brazil, organic growth reached 30%, with plans to leverage integration and platforms like Ignite and InterConnect. , , , ,

AI Investment and Impact
Q: How is Equifax investing in AI, and does it affect margins?
A: Equifax is significantly investing in AI and ML, integrating data into a Single Data Fabric through cloud transformation. This spending is within the normal tech budget and aims to enhance models and products without negatively impacting margins. 89% of models now use AI and ML.

Auto Market Outlook
Q: Is the CDK issue in auto resolved, and what's the outlook?
A: The CDK impact, which was a drag on auto revenues, is resolved. However, higher interest rates continue to dampen consumer demand for auto loans, and this is reflected in cautious guidance for the auto segment. , ,

EWS Mortgage Performance
Q: What's the outlook for EWS Mortgage performance?
A: EWS Mortgage growth will be driven by record additions and new products. EWS inquiries are expected to trend similarly to mortgage inquiries, narrowing the gap observed previously. ,

ID and Fraud Solutions
Q: What caused softness in ID and fraud products?
A: Growth in fraud solutions (Kount) was strong, but chargeback management (Midigator) experienced weakness. New platforms like Kount 360 are expected to improve performance, with integration efforts enhancing growth and margins.

Talent Revenue Recovery
Q: Is Talent revenue growth sustainable?
A: Talent revenue grew 13% in Q2, driven by recovery in hiring and growth in insights products like incarceration and education data. Growth is expected to be sustainable due to continued market penetration and new offerings. , , ,

Scaling AI Initiatives
Q: How is Equifax scaling AI initiatives?
A: Equifax is enhancing AI capabilities through cloud infrastructure and data integration, exceeding goals with 89% of models using AI and ML. Investments focus on improving products without impacting margins.

Credit Card Market Outlook
Q: What's the outlook for the credit card business?
A: The credit card segment is expected to continue mid-single-digit growth, with subprime impacts flattened out. Prime and near-prime markets remain strong, and customers are investing in marketing and originations.

Government Segment Growth
Q: What's driving growth in the government segment?
A: Growth is driven by penetration into a $5 billion TAM, converting manual processes to automated solutions with Equifax data. The extended CMS contract contributes, and growth is expected to outpace overall business.