Equifax Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and operational expenses compared to the same periods in 2023.
For Q3 2024, Equifax achieved operating revenue of $1,441.8 million, reflecting a 9% increase from $1,319.1 million in Q3 2023. The nine-month operating revenue also rose to $4,261.7 million, an 8% increase from $3,938.7 million in the prior year. This growth was driven by strong performance in the U.S. Information Solutions (USIS) and Workforce Solutions segments, with USIS revenue increasing by 12% in Q3 2024 and 10% for the nine months, primarily due to growth in mortgage-related online services.
Operating expenses for Q3 2024 totaled $1,194.7 million, up 11% from $1,072.7 million in Q3 2023. For the nine months, operating expenses increased to $3,507.7 million, a 7.9% rise from $3,250.2 million. The increase in expenses was attributed to higher costs in selling, general, and administrative functions, which rose by 14% in Q3 2024 compared to the previous year.
Equifax's operating income for Q3 2024 was $247.1 million, a slight increase from $246.4 million in Q3 2023. For the nine months, operating income rose to $754.0 million, up 10% from $688.5 million. However, consolidated net income for Q3 2024 decreased to $142.7 million from $164.3 million in Q3 2023, while net income for the nine months increased to $433.9 million from $417.2 million.
The effective income tax rate for Q3 2024 was 26.4%, significantly higher than 13.9% in Q3 2023, primarily due to the write-off of a deferred tax liability related to the acquisition of Boa Vista Serviços (BVS) in August 2023.
Equifax's cash and cash equivalents as of September 30, 2024, stood at $468.2 million, a substantial increase from $216.8 million at the end of 2023. The company reported cash provided by operating activities of $999.7 million for the nine months, up from $794.7 million in the previous year.
In terms of strategic developments, Equifax did not complete any acquisitions in the nine months ended September 30, 2024, following two acquisitions in 2023. The company also recorded restructuring charges of $41.6 million in Q3 2024 related to resource realignment and technology transformation efforts.
Overall, Equifax's performance in Q3 2024 and the first nine months reflects a mix of revenue growth and increased operational costs, alongside strategic adjustments in response to market conditions.
About EQUIFAX INC
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