TransUnion (TRU) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We are subject to significant competition in the markets in which we operate, and we may face significant competition in the new markets that we plan to enter
2. 02To the extent the availability of free or relatively inexpensive consumer information increases, the demand for some of our services may decrease
3. 03Our relationships with key long-term customers may be materially diminished or terminated
4. 04If we are unable to develop successful new services in a timely manner, or if the market does not adopt our new services, our ability to maintain or increase our revenue could be adversely affected
5. 05If our outside service providers and key vendors are not able to or do not fulfill their service obligations, our operations could be disrupted and our operating results could be harmed
6. 06There may be further consolidation in our end-customer markets, which may adversely affect our revenues

Risks Related to Technology and Cybersecurity

1. 07Highly publicized cybersecurity incidents have heightened consumer, legislative and regulatory awareness of cybersecurity risks. These events continue to embolden individuals or groups to target our systems more aggressively
2. 08We may be unable to adequately anticipate, prevent or mitigate damage resulting from increasingly sophisticated methods of illegal or fraudulent activities committed against us, which could harm our business, financial condition and results of operations and could significantly harm our reputation
3. 09Fraudulent activities committed against us could disrupt our operations, have an adverse effect on our financial results, subject us to substantial legal proceedings and potential liability, result in a material loss of business and/or significantly harm our reputation
4. 10We could lose our access to data sources which could prevent us from providing our services
5. 11If we fail to maintain and improve our systems, our data matching technology, and our interfaces with data sources and customers, demand for our services could be adversely affected

Risks Related to Laws, Regulations and Government Oversight

1. 12See Part II, Item 8, “Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements,” Note 21, “Contingencies” for information regarding the CFPB matter
2. 13Our business is subject to various governmental regulations, laws and orders, compliance with which may cause us to incur significant expenses or reduce the availability or effectiveness of our solutions, and the failure to comply with which could subject us to civil or criminal penalties or other liabilities
3. 14designed to protect the privacy of the public and to prevent the misuse of personal information available in the marketplace, are complex, change frequently and have tended to become more stringent over time. We already incur significant expenses to ensure compliance with these laws
4. 15Regulatory oversight of our contractual relationships with certain of our customers may adversely affect our business
5. 16The outcome of litigation, inquiries, investigations, examinations or other legal proceedings in which we are involved, in which we may become involved, or in which our customers or competitors are involved could subject us to significant monetary damages or restrictions on our ability to do business
6. 17See Part II, Item 8, “Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements,” Note 21, “Contingencies” for information regarding our legal proceedings

Risks Related to Global Operations

1. 18Our ability to expand our operations in, and the portion of our revenue derived from, markets outside the United States is subject to economic, political and other inherent risks, which could adversely impact our growth rate and financial performance
2. 19We face geopolitical and other risks associated with our international operations, which could materially adversely impact our results of operations and our financial condition

Risks Related to Intellectual Property

1. 20We may be unable to protect our intellectual property adequately or cost-effectively, which may cause us to lose market share or force us to reduce our prices. We also rely on trade secrets and other forms of unpatented intellectual property that may be difficult to protect
2. 21We may face claims for intellectual property infringement, which could subject us to monetary damages or limit us in using some of our technologies or providing certain services

Risks Related to Our Growth Strategy

1. 22When we engage in acquisitions, investments in new businesses or divestitures of existing businesses, we face risks that may adversely affect our business
2. 23We depend, in part, on strategic alliances, joint ventures and acquisitions to grow our business. If we are unable to make strategic acquisitions and develop and maintain these strategic alliances and joint ventures, our growth may be adversely affected

Risks Related to Our Indebtedness

1. 24We have a substantial amount of debt which could adversely affect our financial position and prevent us from fulfilling our obligations under the debt instruments
2. 25Despite our current level of indebtedness, we may still be able to incur additional indebtedness. This could increase the risks associated with our substantial indebtedness
3. 26We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
4. 27Our inability to generate sufficient cash flow to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms or at all, would materially and adversely affect our financial position and results of operations and our ability to satisfy our obligations

Risks Related to Ownership of Our Common Stock

1. 28Our stock price has recently been volatile, and may continue to be volatile and/or decline, regardless of our operating performance, and you may not be able to resell shares of our common stock at or above the price you paid or at all
2. 29In addition, price volatility may be greater if the public float and trading volume of our common stock is low, and the amount of public float on any given day can vary depending on whether our stockholders choose to hold their shares for the long term
3. 30Our business and operations are exposed to risks arising from developments and trends associated with climate change and other environmental and social matters, including risks associated with our own reporting or other initiatives
4. 31Anti-takeover provisions in our organizational documents might discourage, delay or prevent acquisition attempts for us that you might consider favorable
5. 32Our ability to pay cash dividends may be limited by the terms of our secured credit facility
6. 33There can be no assurance that we will repurchase shares pursuant to our share repurchase program consistent with historical amounts or at all

General Risks

1. 34Economic and other conditions may adversely impact the valuation of our assets resulting in impairment charges that could have a material adverse impact on our results from operations
2. 35unfavorable. If these unfavorable macroeconomic conditions persist longer than we currently expect, or are worse than we currently expect, our estimates of revenue growth rates and EBITDA margins would decline, which could lead to an impairment of goodwill
3. 36Our efforts to execute any element of our business strategy, including our transformation plan to optimize our operating model and invest in our technology, could experience difficulties, delays, or unexpected costs and may not achieve anticipated benefits and savings
4. 37Pandemics, epidemics, disease outbreaks and other public health crises, such as the COVID-19 pandemic, have disrupted our business and operations, and future public health crises could materially adversely impact our business, financial condition, liquidity and results of operations
5. 38We may not be able to attract and retain the skilled employees that we need to support our business
6. 39We are subject to losses from risks for which we do not insure
7. 40If we experience changes in tax laws or adverse outcomes resulting from examination of our tax returns, it could adversely affect our results of operations