And now we’re taking that really best-in-class identity and we’re integrating it into all of our products across TransUnion in the U.S. on the non-FCRA side, right? Additionally, now, we’ve combined all of our audience capabilities, our data and our platforms, that’s coming together. And we achieved a huge step in our integration, right? We closed eight Neustar data centers, and we migrated Neustar’s core technology to a new cloud provider and we €“ or added $20 million in recurring EBITDA as a result. So I feel like we’re getting nice traction, but our plan is to continue our heads-down execution on this deal and to build further momentum over the course of the year.
Operator: The next question is from Kelsey Zhu of Autonomous. Please go ahead.
Kelsey Zhu: Hey guys. On Consumer Interactive, margin fee this quarter is partially due to kind of reduced in investment in advertising. So I was just wondering, should we expect this going forward into ’23? And if that’s the case, how do you think about the shift in competitive length in that market as some of your competitors is still continue to invest in these products?
Christopher Cartwright: Yes, absolutely. Well, look, our consumer direct businesses have faced a series of challenges in the near term. On the indirect side, we needed to lap some contract restructuring and that’s the single largest piece and on the direct-to-consumer side also, we realized that some of our marketing wasn’t yielding fully profitable new customers. And also, we wanted to adjust our acquisition workflows to ensure that they were as consumer-friendly as they could possibly be. As a result, we curtailed some of our direct advertising. And as a consequence of that, we’re winning new €“ smaller new classes of customers, if you will, to replace those at attrit over the course of the year. As we look to ’23 though, the foundation is firming considerably and the rate of decline is moderating, in particular, it moderates quarter-by-quarter over the course of the year.
So first, there’s Sontiq. Sontiq, we believe, is a long-term mid-teens grower. Now last year, we didn’t have the benefit of a particularly large breach. But we did accelerate our subscription sales with Sontiq, which is especially valuable because of the high recurring nature. In ’23, Sontiq grows in the mid-teens. On the indirect side, in ’23, we expect to return to mid-single digits growth. And then in the direct subscriptions to consumers, the first half of the year, we’re still declining because of the change in marketing spend and practices. But by the second half of the year, in the fourth quarter, in particular, we think we get that behind us. So net-net, those are kind of the dynamics that we see in direct-to-consumer. Todd, any particular comments on the margin profile go forward?
Todd Cello: Yes. So the first thing I would add on the margin is the Consumer Interactive business always has had an attractive margin profile with adjusted EBITDA margin in the upper 40% range, sometimes to 50%. And clearly, that’s what we just saw in the fourth quarter. So as we look forward into 2023, and Chris just spoke about the direct business, and that’s really where the opportunity resides for us to gain efficiencies and optimize our advertising spend, the team has done a great job with that. So as a result, we would expect that the margin for this business would be in the same range that we’ve had historically. So in that high 40s to around 50% adjusted EBITDA margin.
Operator: The next question is from Toni Kaplan of Morgan Stanley. Please go ahead.
