Equifax expects its shift to cloud and artificial intelligence (AI) technology to help reduce costs and drive innovation in 2024 and beyond.
The global data, analytics and technology company said in an earnings call on Thursday (July 18) that it is leveraging its new EFX Cloud, with 89% of its new models and scores now built using AI and machine learning (ML).
The company increased the percentage of new models and scores built using AI and ML to 89% from 85% in the first quarter, to 70% in 2023 and 60% in 2022, according to a presentation on Thursday.
“We are entering the next chapter of the new Equifax as we pivot from building the new EFX Cloud to leveraging new cloud capabilities to drive revenue and profits,” Equifax CEO Mark Begur said during the company's quarterly earnings call on Thursday.
Begor said the technology will give the company more efficient access to proprietary data, accelerating new product development and enabling faster, more predictive model development.
On the earnings call, Begor said the company expects investments in new products, data, analytics and AI capabilities to drive growth beyond 2024, and he remains confident in its long-term revenue growth potential of 8% to 12%.
Equifax also reported a 9% increase in second-quarter revenue on Thursday, with growth driven by Workforce Solutions, a non-mortgage validation solution, it said in an earnings release.
The Workforce Solutions business unit, which helps employers verify income and employment and automate payroll-related and human resources (HR) administrative tasks, saw revenue increase 5% in the second quarter, with Government and Workforce Solutions driving a 20% revenue increase in Verification Solutions, a non-mortgage verification solution.
Equifax's U.S. Information Solutions (USIS) business unit, which provides consumer and commercial information solutions to U.S. businesses, achieved 7% revenue growth during the quarter. The division saw revenue growth of 33% in mortgage solutions, 7% in financial marketing services and 5% in online information solutions.
The company's third largest business unit, International, reported revenue growth of 17% on a reported basis and 28% in local currencies, driven by operations in Latin America and Europe.
“Our customers are strong, they have strong balance sheets, and these are important businesses that they want to continue to grow,” Begor said on the earnings conference call, adding that Equifax's differentiated solutions will help them do that.
