Technology

Equifax Delivers Strong Third Quarter 2024 Revenue Growth of 9%, Led by 19% Workforce Solutions Non-Mortgage Verification Services

Published

3 hours ago

October 16, 2024

ATLANTA, Oct. 16, 2024 /PRNewswire/ — Equifax® (NYSE: EFX) today announced financial results for the quarter ended September 30, 2024.

Third quarter 2024 revenue of $1.442 billion grew a strong 9%, with 10% non-mortgage local currency revenue growth.Workforce Solutions third quarter revenue grew 7%, with 9% non-mortgage revenue growth from 19% Verification Services non-mortgage revenue growth led by Government and Talent Solutions. Mortgage revenue was up 4%.USIS third quarter revenue growth of 12% with 36% mortgage revenue growth and 5% non-mortgage revenue growth.Overall U.S. Mortgage revenue up 17%.International third quarter revenue growth of 18% on a local currency basis with 9% on a reported basis, with organic local currency revenue growth of 12%.Strong new product innovation leveraging new EFX Cloud with 13% new product Vitality Index and 100% of new models and scores built using Artificial Intelligence and Machine Learning.

“Equifax had a strong third quarter against our EFX2026 strategic priorities delivering revenue of $1.442 billion, up a strong 9%. Our non-mortgage business, which was about 80% of Equifax revenue in the third quarter, delivered very strong broad-based 10% local currency revenue growth, from continued significant new product performance with a New Product Vitality Index of 13% and 100% of new models and scores built using AI and ML. Workforce Solutions delivered 9% non-mortgage revenue growth, driven by very strong 19% non-mortgage Verification Services revenue growth led by the Government and Talent Solutions businesses. Employer Solutions revenue declined 19% in the quarter. USIS delivered non-mortgage revenue growth of 5% as the team completed the full migration of our USIS Consumer Credit and Telco and Utilities Exchanges to the Cloud in the third quarter. International delivered strong 12% organic local currency revenue growth, led by Latin America and Europe. Our U.S. mortgage businesses grew 17% with USIS mortgage credit inquiries up 1%. USIS had strong 36% growth in mortgage revenue with Workforce Solutions mortgage revenue up 4%,” said Mark W. Begor, Equifax Chief Executive Officer.

“We have strong momentum in 2024 and are confident in the future of the New Equifax as we deliver strong non-mortgage revenue growth, move towards completion of our Cloud migrations, leverage our new Cloud capabilities to accelerate new product roll-outs that ‘Only Equifax’ can provide, and invest in new products, data, analytics, and EFX.AI capabilities which are expected to drive growth in 2024 and beyond. We are energized about the New Equifax and remain confident in our long-term 8-12% revenue growth framework that is expected to deliver higher margins and accelerating free cash flow.”

Financial Results Summary

The Company reported revenue of $1,441.8 million in the third quarter of 2024, up 9% on a reported basis and up 11% on a local currency basis compared to the third quarter of 2023.

Net income attributable to Equifax of $141.3 million was down 13% in the third quarter of 2024 compared to $162.2 million in the third quarter of 2023.

Diluted EPS attributable to Equifax was $1.13 per share for the third quarter of 2024, down 14% compared to $1.31 per share in the third quarter of 2023.

Workforce Solutions third quarter results

Total revenue was $620.0 million in the third quarter of 2024, up 7% compared to the third quarter of 2023. Operating margin for Workforce Solutions was 43.2% in the third quarter of 2024 compared to 41.8% in the third quarter of 2023. Adjusted EBITDA margin for Workforce Solutions was 51.6% in the third quarter of 2024 compared to 50.9% in the third quarter of 2023.Verification Services revenue was $524.9 million, up 14% compared to the third quarter of 2023.Employer Services revenue was $95.1 million, down 19% compared to the third quarter of 2023.

USIS third quarter results

Total revenue was $476.9 million in the third quarter of 2024, up 12% compared to the third quarter of 2023. Operating margin for USIS was 20.6% in the third quarter of 2024 compared to 21.1% in the third quarter of 2023. Adjusted EBITDA margin for USIS was 33.9% in the third quarter of 2024 compared to 34.2% in the third quarter of 2023.Online Information Solutions revenue was $381.1 million, up 9% compared to the third quarter of 2023.Mortgage Solutions revenue was $38.0 million, up 39% compared to the third quarter of 2023.Financial Marketing Services revenue was $57.8 million, up 14% compared to the third quarter of 2023.

International third quarter results

Total revenue was $344.9 million in the third quarter of 2024, up 9% and up 18% compared to the third quarter of 2023 on a reported and local currency basis, respectively. Operating margin for International was 13.9% in the third quarter of 2024 compared to 12.7% in the third quarter of 2023. Adjusted EBITDA margin for International was 27.7% in the third quarter of 2024 compared to 26.2% in the third quarter of 2023.Latin America revenue was $96.7 million, up 21% compared to the third quarter of 2023 on a reported basis and up 58% on a local currency basis.Europe revenue was $94.9 million, up 11% compared to the third quarter of 2023 on a reported basis and up 9% on a local currency basis.Asia Pacific revenue was $88.5 million, up 4% compared to the third quarter of 2023 on a reported basis and up 2% on a local currency basis.Canada revenue was $64.8 million, flat compared to the third quarter of 2023 on a reported basis and up 1% on a local currency basis.

Adjusted EPS and Adjusted EBITDA Margin

Adjusted EPS attributable to Equifax was $1.85 in the third quarter of 2024, up 5% compared to the third quarter of 2023.Adjusted EBITDA margin was 32.7% in the third quarter of 2024 compared to 33.1% in the third quarter of 2023.These financial measures exclude certain items as described further in the Non-GAAP Financial Measures section below.

2024 Fourth Quarter and Full Year Guidance

Q4 2024

FY 2024

Low-End

High-End

Low-End

High-End

Reported Revenue

$1.438 billion

$1.458 billion

$5.700 billion

$5.720 billion

Reported Revenue Growth

8.4 %

9.9 %

8.3 %

8.6 %

Local Currency Growth (1)

9.5 %

11.0 %

10.1 %

10.4 %

Organic Local Currency Growth (1)

9.5 %

11.0 %

8.1 %

8.4 %

Adjusted Earnings Per Share

$2.08 per share

$2.18 per share

$7.25 per share

$7.35 per share

(1) Refer to page 8 for definitions.

About Equifax

At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit www.equifax.com.

Earnings Conference Call and Audio Webcast

In conjunction with this release, Equifax will host a conference call on October 17, 2024 at 8:30 a.m. (ET) via a live audio webcast. To access the webcast and related presentation materials, go to the Investor Relations section of our website at www.equifax.com. The discussion will be available via replay at the same site shortly after the conclusion of the webcast. This press release is also available at that website.

Non-GAAP Financial Measures

This earnings release presents adjusted EPS attributable to Equifax which is diluted EPS attributable to Equifax adjusted (to the extent noted above for different periods) for acquisition-related amortization expense, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs, and adjustments to deferred tax balances. All adjustments are net of tax, with a reconciling item with the aggregated tax impact of the adjustments. This earnings release also presents (i) adjusted EBITDA and adjusted EBITDA margin which is defined as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items, (ii) local currency revenue change which is calculated by conforming 2024 results using 2023 exchange rates and (iii) organic local currency revenue growth which is defined as local currency revenue growth, adjusted to reflect an increase in prior year Equifax revenue from the revenue of acquired companies in the prior year period. These are important financial measures for Equifax but are not financial measures as defined by GAAP.

These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of net income or EPS as determined in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “Investor Relations/Financial Information/Non-GAAP Financial Measures” on our website at www.equifax.com.

Forward-Looking Statements

This release contains forward-looking statements and forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, revenue growth, results of operations and financial performance, strategic initiatives, business plans, prospects and opportunities, the U.S. mortgage market, economic conditions and effective tax rates.

While Equifax believes these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Several factors could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors relate to (i) actions taken by us, including, but not limited to, restructuring actions, strategic initiatives (such as our cloud technology transformation), capital investments and asset acquisitions or dispositions, as well as (ii) developments beyond our control, including, but not limited to, changes in the U.S. mortgage market environment and changes more generally in U.S. and worldwide economic conditions (such as changes in interest rates and inflation levels) that materially impact consumer spending, home prices, investment values, consumer debt, unemployment rates and the demand for Equifax’s products and services. Deteriorations in economic conditions or increases in interest rates could lead to a decline in demand for our products and services and negatively impact our business. It may also impact financial markets and corporate credit markets, which could adversely impact our access to financing or the terms of any financing.

Other risk factors relevant to our business include: (i) any compromise of Equifax, customer or consumer information due to security breaches and other disruptions to our information technology infrastructure; (ii) the failure to achieve and maintain key industry or technical certifications; (iii) the failure to realize the anticipated benefits of our cloud technology transformation strategy; (iv) operational disruptions and strain on our resources caused by our transition to cloud-based technologies; (v) our ability to meet customer requirements for high system availability and response time performance; (vi) effects on our business if we provide inaccurate or unreliable data to customers; (vii) our ability to maintain access to credit, employment, financial and other data from external sources; (viii) the impact of competition; (ix) our ability to maintain relationships with key customers; (x) our ability to successfully introduce new products, services and analytical capabilities; (xi) the impact on the demand for some of our products and services due to the availability of free or less expensive consumer information; (xii) our ability to comply with our obligations under settlement agreements arising out of the 2017 cybersecurity incident; (xiii) potential adverse developments in new and pending legal proceedings, government investigations and regulatory enforcement actions; (xiv) changes in, and the effects of, laws, regulations and government policies governing our business, including oversight by the Consumer Financial Protection Bureau in the U.S., the U.K. Financial Conduct Authority and Information Commissioner’s Office in the U.K., and the Office of Australian Information Commission and the Australian Competition and Consumer Commission in Australia; (xv) the impact of privacy laws and regulations; (xvi) the economic, political and other risks associated with international sales and operations; (xvii) the impact on our reputation and business if we are unable to fulfill our environmental, social and governance commitments; (xviii) our ability to realize the anticipated strategic and financial benefits from our acquisitions, joint ventures and other alliances; (xix) any damage to our reputation due to our dependence on outsourcing certain portions of our operations; (xx) the termination or suspension of our government contracts; (xxi) the impact of infringement or misappropriation of intellectual property by us against third parties or by third parties against us; (xxii) an increase in our cost of borrowing and our ability to access the capital markets due to a credit rating downgrade; (xxiii) our ability to hire and retain key personnel; (xxiv) the impact of adverse changes in the financial markets and corresponding effects on our retirement and post-retirement pension plans; (xxv) the impact of health epidemics, pandemics and similar outbreaks on our business; and (xxvi) risks associated with our use of certain artificial intelligence and machine learning models.

A summary of additional risks and uncertainties can be found in our Annual Report on Form 10-K for the year ended December 31, 2023 including, without limitation, under the captions “Item 1. Business — Governmental Regulation” and “– Forward-Looking Statements” and “Item 1A. Risk Factors” and in our other filings with the U.S. Securities and Exchange Commission. Forward-looking statements are given only as at the date of this release and Equifax disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended September 30,

2024

2023

(In millions, except per share amounts)

(Unaudited)

Operating revenue

$ 1,441.8

$ 1,319.1

Operating expenses:

Cost of services (exclusive of depreciation and amortization below)

645.2

585.2

Selling, general and administrative expenses

380.4

333.1

Depreciation and amortization

169.1

154.4

Total operating expenses

1,194.7

1,072.7

Operating income

247.1

246.4

Interest expense

(56.3)

(62.8)

Other income, net

3.0

7.1

Consolidated income before income taxes

193.8

190.7

Provision for income taxes

(51.1)

(26.4)

Consolidated net income

142.7

164.3

Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests

(1.4)

(2.1)

Net income attributable to Equifax

$ 141.3

$ 162.2

Basic earnings per common share:

Net income attributable to Equifax

$ 1.14

$ 1.32

Weighted-average shares used in computing basic earnings per share

123.9

123.0

Diluted earnings per common share:

Net income attributable to Equifax

$ 1.13

$ 1.31

Weighted-average shares used in computing diluted earnings per share

125.2

123.9

Dividends per common share

$ 0.39

EQUIFAX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2024

December 31, 2023

(In millions, except par values)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 468.2

$ 216.8

Trade accounts receivable, net of allowance for doubtful accounts
of $17.1 and $16.7 at September 30, 2024 and December 31, 2023, respectively

953.6

908.2

Prepaid expenses

133.7

142.5

Other current assets

97.6

88.8

Total current assets

1,653.1

1,356.3

Property and equipment:

Capitalized internal-use software and system costs

2,789.7

2,541.0

Data processing equipment and furniture

257.4

247.9

Land, buildings and improvements

285.9

272.9

Total property and equipment

3,333.0

3,061.8

Less accumulated depreciation and amortization

(1,417.1)

(1,227.8)

Total property and equipment, net

1,915.9

1,834.0

Goodwill

6,730.0

6,829.9

Indefinite-lived intangible assets

94.8

Purchased intangible assets, net

1,632.1

1,858.8

Other assets, net

318.4

306.2

Total assets

$ 12,344.3

$ 12,280.0

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt and current maturities of long-term debt

$ 750.5

$ 963.4

Accounts payable

152.8

197.6

Accrued expenses

263.0

245.1

Accrued salaries and bonuses

206.1

168.7

Deferred revenue

111.7

109.5

Other current liabilities

390.3

334.7

Total current liabilities

1,874.4

2,019.0

Long-term debt

4,721.1

4,747.8

Deferred income tax liabilities, net

342.5

474.9

Long-term pension and other postretirement benefit liabilities

95.2

100.1

Other long-term liabilities

264.5

250.7

Total liabilities

7,297.7

7,592.5

Redeemable noncontrolling interests

120.5

135.1

Equifax shareholders’ equity:

Preferred stock, $0.01 par value: Authorized shares – 10.0; Issued shares – none

—

Common stock, $1.25 par value: Authorized shares – 300.0;

Issued shares – 189.3 at September 30, 2024 and December 31, 2023;

Outstanding shares – 123.9 and 123.3 at September 30, 2024 and December 31, 2023, respectively

236.6

Paid-in capital

1,897.1

1,761.3

Retained earnings

5,893.2

5,608.6

Accumulated other comprehensive loss

(465.1)

(431.2)

Treasury stock, at cost, 64.8 and 65.4 shares at September 30, 2024 and December 31, 2023, respectively

(2,646.9)

(2,635.3)

Stock held by employee benefits trusts, at cost, 0.6 shares at September 30, 2024 and December 31, 2023

(5.9)

Total Equifax shareholders’ equity

4,909.0

4,534.1

Noncontrolling interests

17.1

18.3

Total shareholders’ equity

4,926.1

4,552.4

Total liabilities, redeemable noncontrolling interests, and shareholders’ equity

$ 12,344.3

$ 12,280.0

EQUIFAX INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

2024

2023

(In millions)

(Unaudited)

Operating activities:

Consolidated net income

$ 433.9

$ 417.2

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation and amortization

506.9

461.0

Stock-based compensation expense

71.9

61.3

Deferred income taxes

(45.2)

(67.9)

Gain on fair market value adjustment and gain on sale of equity investments

—

(13.8)

Changes in assets and liabilities, excluding effects of acquisitions:

Accounts receivable, net

(47.8)

(86.4)

Other assets, current and long-term

(13.3)

(16.0)

Current and long term liabilities, excluding debt

93.3

39.3

Cash provided by operating activities

999.7

794.7

Investing activities:

Capital expenditures

(392.6)

(455.6)

Acquisitions, net of cash acquired

—

(276.0)

Cash received from divestitures

—

6.9

Cash used in investing activities

(392.6)

(724.7)

Financing activities:

Net short-term payments

(195.9)

(83.6)

Payments on long-term debt

(695.6)

(575.0)

Proceeds from issuance of long-term debt

649.8

872.9

Dividends paid to Equifax shareholders

(144.8)

(143.7)

Distributions paid to noncontrolling interests

(4.4)

(2.8)

Proceeds from exercise of stock options and employee stock purchase plan

67.5

18.6

Payment of taxes related to settlement of equity awards

(16.4)

(16.9)

Debt issuance costs

(5.2)

(6.0)

Cash (used in) provided by financing activities

(345.0)

63.5

Effect of foreign currency exchange rates on cash and cash equivalents

(10.7)

(6.1)

Increase in cash and cash equivalents

251.4

127.4

Cash and cash equivalents, beginning of period

216.8

285.2

Cash and cash equivalents, end of period

$ 468.2

$ 412.6

Common Questions & Answers (Unaudited)
(Dollars in millions)

1. Can you provide a further analysis of operating revenue by operating segment?

Operating revenue consists of the following components:

(In millions)

Three Months Ended September 30,

Local
Currency

Organic
Local
Currency

Operating revenue:

2024

2023

$ Change

% Change

% Change (1)

% Change (2)

Verification Services

$ 524.9

$ 459.3

$ 65.6

14 %

Employer Services

95.1

117.9

(22.8)

(19) %

Total Workforce Solutions

620.0

577.2

42.8

7 %

Online Information Solutions

381.1

348.2

32.9

9 %

Mortgage Solutions

38.0

27.3

10.7

39 %

Financial Marketing Services

57.8

50.5

7.3

14 %

Total U.S. Information Solutions

476.9

426.0

50.9

12 %

Latin America

96.7

80.1

16.6

21 %

58 %

31 %

Europe

94.9

85.2

9.7

11 %

9 %

Asia Pacific

88.5

85.5

3.0

4 %

2 %

Canada

64.8

65.1

(0.3)

— %

1 %

Total International

344.9

315.9

29.0

9 %

18 %

12 %

Total operating revenue

$ 1,441.8

$ 1,319.1

$ 122.7

9 %

11 %

10 %

(1)

Local currency revenue change is calculated by conforming 2024 results using 2023 exchange rates.

(2)

Organic local currency revenue growth is defined as local currency revenue growth, adjusted to reflect an increase in prior year Equifax revenue from the revenue of acquired companies in the prior year period. This adjustment is made for 12 months following the acquisition.

2. What is the estimate of the change in overall U.S. mortgage market credit inquiry volume that is included in the 2024 fourth quarter and full year guidance provided?

The change year over year in total U.S. mortgage market credit inquiries received by Equifax in the third quarter of 2024 was an increase of 1%. The guidance provided on page 3 assumes a change year over year in total U.S. mortgage market credit inquiries received by Equifax in the fourth quarter of 2024 to be an increase of about 9%. For full year 2024, our guidance assumes a decline of about 7%.

Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share amounts)

A. Reconciliation of net income attributable to Equifax to diluted EPS attributable to Equifax, defined as net income adjusted for acquisition-related amortization expense, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs, adjustments to deferred tax balances and aggregated tax impact of these adjustments:

Three Months Ended September 30,

(In millions, except per share amounts)

2024

2023

$ Change

% Change

Net income attributable to Equifax

$ 141.3

$ 162.2

$ (20.9)

(13) %

Acquisition-related amortization expense of certain acquired intangibles (1)

64.6

64.4

0.2

— %

Accrual for legal and regulatory matters related to the 2017 cybersecurity incident (2)

0.1

14.2

(14.1)

(99) %

Fair market value adjustment of equity investment (3)

—

0.2

(0.2)

Foreign currency impact of certain intercompany loans (4)

0.1

(0.4)

0.5

Acquisition-related costs other than acquisition amortization (5)

15.9

24.4

(8.5)

(35) %

Income tax effects of stock awards that are recognized upon vesting or settlement (6)

(3.1)

(0.3)

(2.8)

Argentina highly inflationary foreign currency adjustment (7)

0.3

0.4

(0.1)

(25) %

Realignment of resources and other costs (8)

41.6

(2.3)

43.9

Adjustments to deferred tax balances (9)

—

(28.2)

28.2

Tax impact of adjustments (10)

(29.0)

(16.7)

(12.3)

74 %

Net income attributable to Equifax, adjusted for items listed above

$ 231.8

$ 217.9

$ 13.9

6 %

Diluted EPS attributable to Equifax, adjusted for items listed above

$ 1.85

$ 1.76

$ 0.09

5 %

Weighted-average shares used in computing diluted EPS

125.2

123.9

nm – not meaningful

(1)

During the third quarter of 2024, we recorded acquisition-related amortization expense of certain acquired intangibles of $64.6 million ($51.4 million, net of tax). We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the significant cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. The $13.2 million of tax is comprised of $17.3 million of tax expense net of $4.1 million of a cash income tax benefit. During the third quarter of 2023, we recorded acquisition-related amortization expense of certain acquired intangibles of $64.4 million ($51.7 million, net of tax). The $12.7 million of tax is comprised of $16.7 million of tax expense net of $4.0 million of a cash income tax benefit. See the Notes to this reconciliation for additional detail.

(2)

During the third quarter of 2024, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $0.1 million. During the third quarter of 2023, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $14.2 million primarily driven by our accrual for a penalty associated with resolution of the investigation of the incident by the Financial Conduct Authority in the United Kingdom. See the Notes to this reconciliation for additional detail.

(3)

During the third quarter of 2023, we recorded a loss on the fair market value adjustment of an equity investment of $0.2 million ($0.1 million, net of tax). The fair value adjustment was recorded to the Other income, net line item within the Consolidated Statements of Income. See the Notes to this reconciliation for additional details.

(4)

During the third quarter of 2024, we recorded a foreign currency loss on certain intercompany loans of $0.1 million. During the third quarter of 2023, we recorded a foreign currency gain on certain intercompany loans of $0.4 million. The impact was recorded to the Other income, net line item within the Consolidated Statements of Income. See the Notes to this reconciliation for additional detail.

(5)

During the third quarter of 2024, we recorded $15.9 million ($12.2 million, net of tax) for acquisition-related costs other than acquisition amortization. During the third quarter of 2023, we recorded $24.4 million ($19.9 million, net of tax) for acquisition-related costs other than acquisition amortization. These costs primarily related to integration costs resulting from recent acquisition activity and were recorded in operating income. See the Notes to this reconciliation for additional detail.

(6)

During the third quarter of 2024, we recorded a tax benefit of $3.1 million related to the tax effects of deductions for stock compensation in excess of amounts recorded for compensation costs. During the third quarter of 2023, we recorded a tax benefit of $0.3 million related to the tax effects of deductions for stock compensation expense in excess of amounts recorded for compensation costs. See the Notes to this reconciliation for additional detail.

(7)

Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers in 2018. During the third quarter of 2024 and 2023, we recorded a foreign currency loss of $0.3 million and $0.4 million, respectively, related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy. See the Notes to this reconciliation for additional detail.

(8)

During the third quarter of 2024, we recorded $41.6 million ($29.5 million, net of tax) of restructuring charges for the realignment of resources and other costs. These restructuring charges predominantly relate to our ongoing efforts toward completion of our technology transformation in order to support the Company’s strategic objectives. During the third quarter of 2023, we recorded an adjustment of $2.3 million ($1.7 million, net of tax) to previous restructuring charges as we refined our estimate for the realignment of resources and other costs recorded in the second quarter of 2023. See the Notes to this reconciliation for additional detail.

(9)

During the third quarter of 2023, we recorded a tax benefit of $28.2 million related to the write off of a deferred tax liability related to our original investment in Boa Vista Serviços as a result of our purchase of the remaining interest in Boa Vista Serviços in the same quarter. See Notes to this reconciliation for additional detail.

(10)

During the third quarter of 2024, we recorded the tax impact of adjustments of $29.0 million comprised of (i) acquisition-related amortization expense of certain acquired intangibles of $13.2 million ($17.3 million of tax expense net of $4.1 million of cash income tax benefit), (ii) a tax adjustment of $3.7 million related to acquisition-related costs other than acquisition amortization, and (iii) a tax adjustment of $12.1 million related to the realignment of resources and other costs.

During the third quarter of 2023, we recorded the tax impact of adjustments of $16.7 million comprised of (i) acquisition-related amortization expense of certain acquired intangibles of $12.7 million ($16.7 million of tax expense net of $4.0 million of cash income tax benefit), (ii) a tax adjustment of $0.1 million related to the fair market value adjustment of an equity investment, (iii) a tax adjustment of $4.5 million related to acquisition-related costs other than amortization, and (iv) a tax adjustment of $0.6 million related to the realignment of resources and other costs.

B. Reconciliation of net income attributable to Equifax to adjusted EBITDA, defined as net income excluding income taxes, interest expense, net, depreciation and amortization expense, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs and presentation of adjusted EBITDA margin:

Three Months Ended September 30,

(In millions)

2024

2023

$ Change

% Change

Revenue

$ 1,441.8

$ 1,319.1

$ 122.7

9 %

Net income attributable to Equifax

$ 141.3

$ 162.2

$ (20.9)

(13) %

Income taxes

51.1

26.4

24.7

94 %

Interest expense, net*

52.4

56.6

(4.2)

(7) %

Depreciation and amortization

169.1

154.4

14.7

10 %

Accrual for legal and regulatory matters related to 2017 cybersecurity incident (1)

0.1

14.2

(14.1)

(99) %

Fair market value adjustment of equity investment (2)

—

0.2

(0.2)

Foreign currency impact of certain intercompany loans (3)

0.1

(0.4)

0.5

Acquisition-related amounts other than acquisition amortization (4)

15.9

24.4

(8.5)

(35) %

Argentina highly inflationary foreign currency adjustment (5)

0.3

0.4

(0.1)

(25) %

Realignment of resources and other costs (6)

41.6

(2.3)

43.9

Adjusted EBITDA, excluding the items listed above

$ 471.9

$ 436.1

$ 35.8

8 %

Adjusted EBITDA margin

32.7 %

33.1 %

nm – not meaningful

*Excludes interest income of $3.9 million in 2024 and $6.2 million in 2023.

(1)

(2)

(3)

During the third quarter of 2024, we recorded a foreign currency loss on certain intercompany loans of $0.1 million. During the third quarter of 2023, we recorded a foreign currency gain on certain intercompany loans of $0.4 million. See the Notes to this reconciliation for additional detail.

(4)

(5)

(6)

C. Reconciliation of operating income by segment to adjusted EBITDA, excluding depreciation and amortization expense, other income (expense), net, noncontrolling interest, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, fair market value adjustment of equity investment, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs and presentation of adjusted EBITDA margin for each of the segments:

(In millions)

Three Months Ended September 30, 2024

Workforce
Solutions

U.S. Information
Solutions

International

General
Corporate
Expense

Total

Revenue

$ 620.0

$ 476.9

$ 344.9

—

$ 1,441.8

Operating income

267.6

98.1

48.1

(166.7)

247.1

Depreciation and amortization

44.9

61.0

43.6

19.6

169.1

Other income (expense), net*

—

1.2

(2.1)

(0.9)

Noncontrolling interest

—

(1.4)

—

(1.4)

Adjustments (1)

7.4

2.5

4.1

44.0

58.0

Adjusted EBITDA

$ 319.9

$ 161.6

$ 95.6

$ (105.2)

$ 471.9

Operating margin

43.2 %

20.6 %

13.9 %

17.1 %

Adjusted EBITDA margin

51.6 %

33.9 %

27.7 %

32.7 %

nm – not meaningful

*Excludes interest income of $2.1 million in International and $1.8 million in General Corporate Expense.

(In millions)

Three Months Ended September 30, 2023

Workforce
Solutions

U.S. Information
Solutions

International

General
Corporate
Expense

Total

Revenue

$ 577.2

$ 426.0

$ 315.9

—

$ 1,319.1

Operating income

241.2

89.7

40.2

(124.7)

246.4

Depreciation and amortization

44.2

51.1

39.7

19.4

154.4

Other (expense) income, net*

—

(0.2)

1.9

(0.8)

0.9

Noncontrolling interest

—

(2.1)

—

(2.1)

Adjustments (1)

8.3

5.2

3.2

19.8

36.5

Adjusted EBITDA

$ 293.7

$ 145.8

$ 82.9

$ (86.3)

$ 436.1

Operating margin

41.8 %

21.1 %

12.7 %

18.7 %

Adjusted EBITDA margin

50.9 %

34.2 %

26.2 %

33.1 %

nm – not meaningful

*Excludes interest income of $5.7 million in International and $0.5 million in General Corporate Expense.

(1)

During the third quarter of 2024, we recorded pre-tax expenses of $0.1 million for an accrual for legal and regulatory matters related to the 2017 cybersecurity incident, $0.1 million for a foreign currency loss on certain intercompany loans, $15.9 million for acquisition-related costs other than acquisition amortization, a foreign currency loss of $0.3 million related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy, and $41.6 million of restructuring charges for the realignment of resources and other costs.

During the third quarter of 2023, we recorded pre-tax expenses of $14.2 million for an accrual for legal and regulatory matters related to the 2017 cybersecurity incident, a $0.2 million loss on the fair market value adjustment of equity investments, a $0.4 million foreign currency gain on certain intercompany loans, $24.4 million in acquisition-related costs other than acquisition amortization, a foreign currency loss of $0.4 million related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy, and $2.3 million of an adjustment to previous restructuring charges as we refined our estimate for the realignment of resources and other costs recorded in the second quarter of 2023.

Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures

Diluted EPS attributable to Equifax is adjusted for the following items:

Acquisition-related amortization expense – During the third quarter of 2024 and 2023, we recorded acquisition-related amortization expense of certain acquired intangibles of $64.6 million ($51.4 million, net of tax) and $64.4 million ($51.7 million, net of tax), respectively. We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the material cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. These financial measures are not prepared in conformity with GAAP. Management believes excluding the impact of amortization expense is useful because excluding acquisition-related amortization and other items that are not comparable allows investors to evaluate our performance for different periods on a more comparable basis. Certain acquired intangibles result in material cash income tax savings which are not reflected in earnings. Management believes that including a benefit to reflect the cash income tax savings is useful as it allows investors to better value Equifax. Management makes these adjustments to earnings when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital.

Accrual for legal and regulatory matters related to the 2017 cybersecurity incident – Accrual for legal and regulatory matters related to the 2017 cybersecurity incident includes legal fees to respond to subsequent litigation and government investigations for both periods presented. During the third quarter of 2024, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $0.1 million. During the third quarter of 2023, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $14.2 million primarily driven by our accrual for a penalty associated with resolution of the investigation of the incident by the Financial Conduct Authority in the United Kingdom. Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. Management makes these adjustments to net income when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Fair market value adjustment of equity investment – During the third quarter of 2023, we recorded a $0.2 million ($0.1 million, net of tax) loss related to adjusting our investment in Brazil to fair market value at the date of the acquisition. On August 7, 2023, we purchased the remaining interest of our equity investment in Brazil. The investment in Brazil had a readily determinable fair value and the carrying value of the investment was adjusted to fair value as of the close date, resulting in a loss. Management believes excluding this charge from certain financial results provides meaningful supplemental information regarding our financial results for the three months ended September 30, 2023, since the non-operating loss is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Foreign currency impact of certain intercompany loans – During the third quarter of 2024 and 2023, we recorded a loss of $0.1 million and a gain of $0.4 million, respectively, related to foreign currency impact of certain intercompany loans. Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Acquisition-related costs other than acquisition amortization – During the third quarter of 2024 and 2023, we recorded $15.9 million ($12.2 million, net of tax) and $24.4 million ($19.9 million, net of tax), respectively, for acquisition-related costs other than acquisition amortization. These costs primarily related to integration costs resulting from recent acquisitions and were recorded in operating income. Management believes excluding this charge from certain financial results provides meaningful supplemental information regarding our financial results, since a charge of such an amount is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting, and analyzing future periods.

Income tax effects of stock awards that are recognized upon vesting or settlement – During the third quarter of 2024, we recorded a tax benefit of $3.1 million related to the tax effects of deductions for stock compensation in excess of amounts recorded for compensation costs. During the third quarter of 2023, we recorded a tax benefit of $0.3 million related to the tax effects of deductions for stock compensation in excess of amounts recorded for compensation costs. Management believes excluding this tax effect from financial results provides meaningful supplemental information regarding our financial results for the three months ended September 30, 2024 and 2023 because these amounts are non-operating and relate to income tax benefits or deficiencies for stock awards recognized when tax amounts differ from recognized stock compensation cost. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Argentina highly inflationary foreign currency adjustment – Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. We recorded a foreign currency loss of $0.3 million and $0.4 million during the third quarter of 2024 and 2023, respectively, as a result of remeasuring the peso denominated monetary assets and liabilities due to Argentina being highly inflationary. Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Charge related to the realignment of resources and other costs – During the third quarter of 2024, we recorded $41.6 million ($29.5 million, net of tax) of restructuring charges for the realignment of resources and other costs. These restructuring charges predominantly relate to our ongoing efforts toward completion of our technology transformation in order to support the Company’s strategic objectives. During the third quarter of 2023, we recorded an adjustment of $2.3 million ($1.7 million, net of tax) to previous restructuring charges as we refined our estimate for the realignment of resources and other costs recorded in the second quarter of 2023. Management believes excluding this charge from certain financial results provides meaningful supplemental information regarding our financial results for the three months ended September 30, 2024 and 2023, since the charges are not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Adjustments to deferred tax balances – During the third quarter of 2023, we recorded a tax benefit of $28.2 million related to the write off of a deferred tax liability related to our original investment in Boa Vista Serviços as a result of our purchase of the remaining interest in Boa Vista Serviços in the same quarter. We determined the deferred tax balance should no longer be recorded as a result of our purchase of the remaining interest in Boa Vista Serviços during the third quarter of 2023. Management believes excluding this tax effect from certain financial results provides meaningful supplemental information regarding our financial results for the three months ended September 30, 2023, since this tax benefit is not comparable among the periods. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.

Adjusted EBITDA and EBITDA margin – Management defines adjusted EBITDA as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization and also excludes certain one-time items. Management believes the use of adjusted EBITDA and adjusted EBITDA margin allows investors to evaluate our performance for different periods on a more comparable basis.

Contact:

Trevor Burns

Kate Walker

Investor Relations

Media Relations

trevor.burns@equifax.com

mediainquiries@equifax.com

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SOURCE Equifax Inc.

Technology

Robinhood to Offer Cboe’s Index Options, Expanding Retail Access

Published

1 min ago

October 16, 2024

For the first time, Robinhood customers will have access to index options, expanding their trading capabilities on its platformCboe’s index options – S&P 500 Index, Cboe Volatility Index, Russell 2000 Index, and Mini S&P 500 Index options – soon available to Robinhood customers on its platformLaunch taps into rising investor demand for options trading, market data and education

CHICAGO and MIAMI, Oct. 16, 2024 /PRNewswire/ — Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, and Robinhood Markets Inc. today announced at the HOOD Summit in Miami, Florida, Robinhood’s upcoming launch of Cboe’s index options on its platform. For the first time, Robinhood customers will soon be able to trade index options – including Cboe’s flagship S&P 500 Index (SPX) options, Cboe Volatility Index (VIX) options, Russell 2000 Index (RUT) options and Mini SPX (XSP) options – expanding their trading capabilities on its platform.

Cboe’s proprietary suite of index options will provide Robinhood’s customers potential new ways to gain broad U.S. market exposure, hedge against U.S. large-cap and U.S. small-cap equity market volatility, generate income and capitalize on market movements1 on Robinhood’s platform. Index options offer the benefits of cash-settlement (accounts are debited or credited in cash; there is no physical transfer of shares) and European-style exercise (options expire on their expiration date; there is no risk of early assignment).

“The rise of the retail investor is one of the greatest forces reshaping financial markets today,” said Dave Howson, Global President at Cboe Global Markets. “Retail traders have expanded their financial knowledge and trading experience in recent years to become much more sophisticated, and now, they are seeking new opportunities to further elevate their trading strategies. Cboe’s proprietary index options are among some of the world’s most popular, liquid and actively traded options products, which we believe will be a welcome addition to the retail trader’s toolkit. Cboe’s index options have long been used by institutional investors to manage risk and build wealth. Now, with Robinhood offering index options to its growing user base, we are excited even more investors may access the utility of our products.”

Robinhood makes Cboe Global Indices Feed, which provides real-time index values for products like SPX, VIX and RUT options, available to its customers. The feed may offer additional data to support customers when making their own trading decisions.

“Robinhood continues to deliver innovative and intuitive trading solutions that empower retail investors, and our collaboration with Cboe aligns perfectly with that mission,” said Steve Quirk, Chief Brokerage Officer at Robinhood. “As our customers have grown, they have asked us for access to more advanced assets including index options, which allow them to diversify their portfolio and better manage risk. Adding index options to Robinhood is a natural extension of our product offering and has been one of the most requested asset classes by our customers. This will be another powerful tool to help them navigate their financial future.”

Demand for options trading has risen among both retail and institutional investors who may be seeking tools to manage risk and capture market opportunities. In 2023, total U.S. options volumes exceeded 11 billion contracts, marking the fourth consecutive year of record volumes and a 126% increase since 20192. Average daily volumes this year through third-quarter 20243 was 47 million contracts, an 8% increase compared to the same period last year.

Cboe’s proprietary product suite has similarly seen increasing investor participation, with average daily volumes reaching a record high of 4.2 million contracts during third-quarter 2024, up 13% from third-quarter 2023. In response to growing investor demand, Cboe’s Options Institute, a leader in options education for more than 35 years, has expanded its offerings to include free online courses, webinars, interactive tutorials and insights from top market experts and academics, all tailored to help retail traders – whether beginners or seasoned investors – enhance their understanding of index options and build the knowledge they need to trade with confidence.

“As we move through 2024, one theme is clear: the need for robust risk management tools has never been greater and we see both institutional and retail participants, domestic and international, increasingly turning to options,” said Catherine Clay, Global Head of Derivatives at Cboe Global Markets. “We see that investors are trading options with both longer and shorter durations and utilizing various strategies – whether hedging event risk, systematically selling call and put spreads to generate income, or trading options within a shorter time horizon to capture intraday moves. The U.S. options market has never been more vibrant and robust, and, as the options industry leader, Cboe remains committed to providing all investors access to this deep and growing liquidity pool.”

For more information on Cboe’s proprietary index options and educational offerings, visit: https://go.cboe.com/youhaveoptions.

About Cboe Global Markets

Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

Cboe Media Contacts

Cboe Analyst Contact

Angela Tu

Tim Cave

Kenneth Hill, CFA

+1-646-856-8734

+44 (0) 7593-506-719

+1-312-786-7559

atu@cboe.com

tcave@cboe.com

khill@cboe.com

CBOE-C
CBOE-OE

Cboe®, VIX®, and Cboe Global Markets® are registered trademarks of Cboe Exchange, Inc. S&P®, SPX® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC, and have been licensed for use by Cboe Exchange, Inc. and its affiliates (collectively “Cboe”) All other trademarks and service marks are the property of their respective owners.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”) and has been licensed for use by Cboe. Cboe exchange-traded products that have the S&P 500 Index or other S&P Indexes (collectively, the “S&P Indexes”) as their underlying interest are not sponsored, endorsed, sold or promoted by S&P DJI or its affiliates (collectively, “S&P”). S&P does not make any representations or recommendations concerning the advisability of investing in products that have S&P Indexes as their underlying interests, and S&P will have no liability with respect thereto.

Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us disclaimers.

Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with S&P, Russell, or Robinhood Markets Inc. Investors should undertake their own due diligence regarding their securities, futures, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.

Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.

Cboe Global Markets, Inc. and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the third-party indices referenced in this press release and shall not in any way be liable for any inaccuracies or errors in any of the indices referenced in this press release.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.

We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

1 Cboe’s proprietary index options are available for trading on a number of retail brokerage platforms. Please consult your retail broker for more information.
2 Source: OCC
3 Source: OCC

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SOURCE Cboe Global Markets, Inc.

Technology

Automatic Securities Disposition Plan Established by Tecsys’ Executive Chairman

Published

1 min ago

October 16, 2024

MONTREAL, Oct. 16, 2024 /CNW/ — Tecsys Inc. (TSX: TCS), (the “Corporation”), announces that the executive chairman of the board of directors of the Corporation, Dave Brereton, together with his spouse, Ms. Kathryn Ensign-Brereton, established an automatic securities disposition plan (the “ASDP”) in accordance with applicable securities legislation and the Corporation’s internal policies. The ASDP has been established by Mr. Brereton and Ms. Ensign-Brereton for personal and financial planning purposes and Mr. Brereton, directly and through his holding company, Dabre Inc., and Ms. Ensign-Brereton will continue to hold a significant equity interest in the Corporation following the disposition of the common shares of the Corporation (the “Common Shares”) under the ASDP.

The ASDP permits trades to be made in accordance with pre-arranged instructions given that neither Mr. Brereton nor Ms. Ensign-Brereton was in possession of any material undisclosed information at the time the instructions were given. The ASDP will be effective on the second trading day following the date on which the Corporation has filed its interim financial statements for the quarter ending October 31, 2024.

Up to 96,000 Common Shares (the “Subject Shares”), representing approximately 0.7% of the issued and outstanding Common Shares, may be sold or donated by Mr. Brereton, as to 50%, and Ms. Ensign-Brereton, as to 50%, under the ASDP. The ASDP is designed to allow for an orderly disposition of the Subject Shares at prevailing market prices over the course of the 12-month period that sales and donations under the ASDP are expected to take place.

Mr. Brereton and Ms. Ensign-Brereton have provided pre-arranged instructions in writing to the broker administering the ASDP, including that the proportion of Subject Shares to be sold will be 60% and the proportion of Subject Shares to be donated will be 40%, and setting out minimum trade prices. The ASDP prohibits the broker from consulting with Mr. Brereton or Ms. Ensign-Brereton regarding any sales under the ASDP and prohibits Mr. Brereton or Ms. Ensign-Brereton from disclosing to the broker any information concerning the Corporation that might influence the execution of the ASDP. The ASDP has been authorized by the Corporation and contains meaningful restrictions on the ability of Mr. Brereton and Ms. Ensign-Brereton to amend, suspend or terminate the ASDP.

This announcement is made and will be available on SEDAR+ at www.sedarplus.ca pursuant to the recommended practices set forth in Staff Notice 55-317 – Automatic Securities Disposition Plans of the Canadian Securities Administrators. Information regarding the ASDP and transactions thereunder, as the case may be, may be accessed on SEDI at www.sedi.ca.

About Tecsys

Tecsys is a global provider of advanced supply chain solutions. With a commitment to innovation and customer success, the company equips organizations with the essential software, technology and expertise needed for operational excellence and competitive advantage. Its cloud solutions serve a diverse range of industries, including healthcare, distribution and converging commerce, across multiple complex, regulated and high-volume markets. Built on the Itopia® low-code application platform, Tecsys’ offerings include enterprise resource planning, warehouse management, consolidated service management, distribution and transportation management, supply management at the point of use and order management solutions. Tecsys provides critical data insights and control across the supply chain, ensuring that organizations are agile, responsive and scalable.

Tecsys is publicly traded on the Toronto Stock Exchange under the ticker symbol TCS. For more about Tecsys and its solutions, please visit www.tecsys.com.

SOURCE Tecsys Inc.

Technology

MongoDB Announces Redemption of All of Its Outstanding Convertible Senior Notes due 2026

Published

1 hour ago

October 16, 2024

NEW YORK, Oct. 16, 2024 /PRNewswire/ — MongoDB, Inc. (“MongoDB”) (Nasdaq: MDB), the leading, modern general purpose database platform, today announced that it issued a notice of redemption for all $1,149,972,000 aggregate principal amount outstanding of its 0.25% convertible senior notes due 2026 (the “Notes”). The redemption date will be December 16, 2024. The redemption price with respect to any redeemed note will equal 100% of the principal amount thereof, plus accrued and unpaid interest, from July 15, 2024, to, but excluding the redemption date. On the redemption date, the redemption price will become due and payable upon each note to be redeemed and interest thereon will cease to accrue on and after the redemption date.

The notes may be converted by holders at any time before 5:00 p.m. (New York City time) on December 13, 2024 (the “conversion deadline”). The conversion rate for notes converted after today and through the conversion deadline is equal to 4.9260 shares of common stock of MongoDB, par value $0.001 per share (the “Common Stock”), per $1,000 principal amount of the notes, which includes an increase to the conversion rate of 0.1911 shares of Common Stock per $1,000 principal amount of the notes as a result of the notes being called for redemption. MongoDB has elected to settle any conversions of the notes during the redemption period by delivering shares of its Common Stock, together with cash, if applicable, in lieu of delivering any fractional share of Common Stock (physical settlement).

About MongoDB

Headquartered in New York, MongoDB’s mission is to empower innovators to create, transform, and disrupt industries by unleashing the power of software and data. Built by developers, for developers, MongoDB’s developer data platform is a database with an integrated set of related services that allow development teams to address the growing requirements for today’s wide variety of modern applications, all in a unified and consistent user experience. MongoDB has tens of thousands of customers in over 100 countries. The MongoDB database platform has been downloaded hundreds of millions of times since 2007, and there have been millions of builders trained through MongoDB University courses.

Forward Looking Statements

This press release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning the planned redemption of the notes. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “would” or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: risks associated with executing the redemption of the notes and events that could impact the terms of the redemption, as well as those described in MongoDB’s filings with the United States Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2024, filed with the SEC on August 30, 2024, and other filings and reports that we may file from time to time with the SEC. Except as required by law, we undertake no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.

Investor Relations
Brian Denyeau
ICR for MongoDB
646-277-1251
ir@mongodb.com

Media Relations
MongoDB
press@mongodb.com

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SOURCE MongoDB, Inc.