Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended June 30, 2020.
“red violet demonstrated the strength of its
business model, generating a record $1.8 million in positive cash
flow from operations despite the economic challenges of the
pandemic during the quarter,” stated Derek Dubner, red violet’s
CEO. “Our next-generation technology platform, mission-critical
product suite, differentiated data assets, and incredible team
delivered sequentially improving financial and business results
from the economic trough that occurred early in the second quarter.
We continue to experience improving conditions in our business and
given the present economic and secular tailwinds that we expect to
continue, we believe we are well-positioned for the second half of
the year and throughout 2021.”
“During this unprecedented period, we implemented a
multi-prong strategy to ensure the long-term success of our
business --- helping our customers, ensuring the health and
financial well-being of our team members, gaining market share,
continuing advancement in technology and products and fortifying
our balance sheet. We provided temporary assistance to customers,
solidifying relationships and demonstrating our commitment to their
success. We did not reduce any personnel as a result of the
pandemic; to the contrary, we are selectively adding to the team.
Presented with the opportunity to capture market share where
organizations are increasingly demanding greater efficiencies and
ROI within their workflow to offset the negative impacts of the
pandemic, new customer applications in June exceeded pre-pandemic
levels, followed by July exceeding June by 8%.”
“Focusing on the operational leverage of our
business model, we more than doubled our adjusted EBITDA on less
revenue. Our high-margin platform revenue was up 11% over prior
year, offsetting the decline in our services revenue by
contributing more profitable dollars to the bottom line.”
“I am extremely proud of the performance of our
team and the business during this unique period in time. Given our
differentiated technology and data assets, our strong balance
sheet, and secular tailwinds including the accelerated
transformation to e-commerce and cloud adoption for increased
efficiency and scale, we are extremely optimistic about our
business long term.”
Second Quarter Financial
Results
For the three months ended June 30, 2020 as
compared to the three months ended June 30, 2019:
- Total revenue decreased 3% to $7.1 million. Platform revenue
increased 11% to $6.9 million. Services revenue decreased 82% to
$0.2 million.
- Net loss narrowed 34% to $2.5 million.
- Adjusted EBITDA increased 155% to $0.9 million.
- Gross profit decreased 1% to $3.5 million. Gross margin
increased to 50% from 49%.
- Adjusted gross profit increased 7% to $4.5 million. Adjusted
gross margin increased to 63% from 58%.
- Generated $1.8 million in cash from operating activities in the
second quarter.
- Cash and cash equivalents were $13.8 million as of June 30,
2020.
Covid-19 Impact, Recovery and
Opportunity
- Our high-margin, platform revenue business demonstrated strong
resilience throughout the Covid-impacted period. As a result, on
less revenue our adjusted EBITDA more than doubled to $0.9 million
and our positive cash flow from operating activities increased $1.7
million compared to prior year.
- Business trends in the quarter have been positive since April,
experiencing a 12% increase in monthly revenue for June compared to
the April low. June provided our highest monthly new customer
applications for the year, surpassing our pre-Covid monthly high,
and up 33% compared to April low.
- The positive momentum building throughout the second quarter
has continued in July with monthly revenue up 9% and new customer
applications up 8% over June.
- Government actions, including stay-at-home orders, social
distancing policies, and temporary collections moratoria resulted
in reduced transactional volumes during the quarter. However,
transactional volumes in July returned to pre-Covid
levels.
- Our services revenue, comprised of our ancillary collections
market offering, idiVERIFIED™, which is purely transactional and of
a lower margin profile, experienced sharp volume declines in April
attributed to transitory collections moratoria, forbearance
programs and government stimulus. However, this offering showed
signs of recovery in the quarter and into July. Given current
visibility, customer feedback and the overall economic impact on
consumer financial profiles, we believe we will realize pent-up
demand in the back half of 2020 with strong tailwinds extending
throughout 2021.
- During the quarter, we took a proactive customer-centric
approach working with those impacted by the pandemic, temporarily
granting requests for reductions, or eliminations where applicable,
of minimum monthly contractual commitments on a month-to-month
basis during the second quarter. The end date of the customers’
agreement was extended by one month for each month of the temporary
concession.
- In April we provided concessions to a total of 124 customers,
representing $130 thousand reduction of minimum committed spend. In
May we provided concessions to a total of 123 customers,
representing $129 thousand reduction of minimum committed spend. In
June we provided concessions to a total of 72 customers,
representing $83 thousand reduction of minimum committed spend. In
July we provided concessions to a total of 20 customers,
representing $42 thousand reduction of minimum committed
spend.
- As our business model has proved resilient during this
unprecedented time, we are well positioned within the markets we
serve and with the solutions we provide to quickly return to our
pre-Covid growth levels in the near-term. The pandemic has
accelerated the pace of digital transformation for virtually every
business, creating a confluence of micro and macro trends that will
provide strong momentum for our business for years to come through
growth in e-commerce, demand for cloud efficiency and scale,
increased reliance on fraud mitigation solutions as greater
transactions move online, the necessity of solving for data
fragmentation, and the need for enhanced understanding of consumer
risk and financial profiles.
Use of Non-GAAP Financial
Measures
Management evaluates the financial performance of
our business on a variety of key indicators, including non-GAAP
metrics of adjusted EBITDA, adjusted gross profit and adjusted
gross margin. Adjusted EBITDA is a financial measure equal to net
loss, the most directly comparable financial measure based on GAAP,
excluding interest income, net, depreciation and amortization,
share-based compensation expense, and write-off of long-lived
assets and others. We define adjusted gross profit as revenue less
cost of revenue (exclusive of depreciation and amortization), and
adjusted gross margin as adjusted gross profit as a percentage of
revenue.
Conference Call
In conjunction with this release, red violet will
host a conference call and webcast today at 4:30pm ET to discuss
its quarterly results and provide a business update. To
listen to the call, please dial (877) 665-6635 for domestic callers
or (602) 563-8608 for international callers, using the passcode
1264788. To access the live audio webcast, visit the Investors
section of the red violet website at www.redviolet.com. Please
login at least 15 minutes prior to the start of the call to ensure
adequate time for any downloads that may be required.
Following the completion of the conference call, a replay will be
available for approximately one week by dialing (855) 859-2056 or
(404) 537-3406 with the replay passcode 1264788. An archived
webcast of the conference call will be available on the Investors
section of the red violet website at www.redviolet.com.
About red violet®
At red violet, we believe that time is your most
valuable asset. Through powerful analytics, we transform data into
intelligence, in a fast and efficient manner, so that our clients
can spend their time on what matters most - running their
organizations with confidence. Through leading-edge, proprietary
technology and a massive data repository, our analytics and
information solutions harness the power of data fusion, uncovering
the relevance of disparate data points and converting them into
comprehensive and insightful views of people, businesses, assets
and their interrelationships. We empower clients across markets and
industries to better execute all aspects of their business, from
managing risk, recovering debt, identifying fraud and abuse, and
ensuring legislative compliance, to identifying and acquiring
customers. At red violet, we are dedicated to making the world a
safer place and reducing the cost of doing business. For more
information, please visit www.redviolet.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking
statements," as that term is defined under the Private Securities
Litigation Reform Act of 1995 (PSLRA), which statements may be
identified by words such as "expects," "plans," "projects," "will,"
"may," "anticipate," "believes," "should," "intends," "estimates,"
and other words of similar meaning. Such forward looking statements
are subject to risks and uncertainties that are often difficult to
predict, are beyond our control and which may cause results to
differ materially from expectations, including the impact of the
Covid-19 pandemic on our current and future results of operations,
whether, given the improving conditions in our business and the
present economic and secular tailwinds that we expect to continue,
we are well-positioned for the second half of the year and
throughout 2021, whether, given our differentiated technology and
data assets, our strong balance sheet, and secular tailwinds
including the accelerated transformation to e-commerce and cloud
adoption for increased efficiency and scale, we are extremely
optimistic about our business long term, whether, given current
visibility, customer feedback and the overall economic impact on
consumer financial profiles, we believe we will realize pent-up
demand in the back half of 2020 with strong tailwinds extending
throughout 2021 for our services revenue, and whether the pandemic
has accelerated the pace of digital transformation for virtually
every business, creating a confluence of micro and macro trends
that will provide strong momentum for our business for years to
come through growth in e-commerce, demand for cloud efficiency and
scale, increased reliance on fraud mitigation solutions as greater
transactions move online, the necessity of solving for data
fragmentation, and the need for enhanced understanding of consumer
risk and financial profiles. Readers are cautioned not to place
undue reliance on these forward-looking statements, which are based
on our expectations as of the date of this press release and speak
only as of the date of this press release and are advised to
consider the factors listed above together with the additional
factors under the heading "Forward-Looking Statements" and "Risk
Factors" in red violet's Form 10-K for the year ended December 31,
2019 filed on March 12, 2020, as may be supplemented or amended by
the Company's other SEC filings. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise, except as
required by law.
RED VIOLET,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share
data)(unaudited)
|
|
June 30, 2020 |
|
|
December 31, 2019 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,782 |
|
|
$ |
11,776 |
|
Accounts receivable, net of
allowance for doubtful accounts of $53 and $40 |
|
|
|
|
|
|
|
|
as of June 30, 2020 and December 31, 2019, respectively |
|
|
2,691 |
|
|
|
3,543 |
|
Prepaid expenses and other
current assets |
|
|
861 |
|
|
|
722 |
|
Total current assets |
|
|
17,334 |
|
|
|
16,041 |
|
Property and equipment,
net |
|
|
586 |
|
|
|
660 |
|
Intangible assets, net |
|
|
26,394 |
|
|
|
24,034 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
2,395 |
|
|
|
2,620 |
|
Other noncurrent assets |
|
|
137 |
|
|
|
289 |
|
Total assets |
|
$ |
52,073 |
|
|
$ |
48,871 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,723 |
|
|
$ |
2,138 |
|
Accrued expenses and other
current liabilities |
|
|
644 |
|
|
|
1,571 |
|
Current portion of operating
lease liabilities |
|
|
521 |
|
|
|
491 |
|
Current portion of long-term
loan |
|
|
702 |
|
|
|
- |
|
Deferred revenue |
|
|
151 |
|
|
|
128 |
|
Total current liabilities |
|
|
4,741 |
|
|
|
4,328 |
|
Noncurrent operating lease
liabilities |
|
|
2,192 |
|
|
|
2,459 |
|
Long-term loan |
|
|
1,450 |
|
|
|
- |
|
Total liabilities |
|
|
8,383 |
|
|
|
6,787 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par
value, 10,000,000 shares authorized, and 0 shares |
|
|
|
|
|
|
|
|
issued and outstanding, as of
June 30, 2020 and December 31, 2019 |
|
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 11,707,829 and |
|
|
|
|
|
|
|
|
11,657,912 shares issued, 11,604,682 and 11,554,765 shares
outstanding, as of |
|
|
|
|
|
|
|
|
June 30, 2020 and December 31, 2019 |
|
|
12 |
|
|
|
12 |
|
Treasury stock, at cost,
103,147 shares as of June 30, 2020 and December 31, 2019 |
|
|
(1,255 |
) |
|
|
(1,255 |
) |
Additional paid-in
capital |
|
|
64,806 |
|
|
|
59,187 |
|
Accumulated deficit |
|
|
(19,873 |
) |
|
|
(15,860 |
) |
Total shareholders'
equity |
|
|
43,690 |
|
|
|
42,084 |
|
Total liabilities and
shareholders' equity |
|
$ |
52,073 |
|
|
$ |
48,871 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share
data)(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
7,056 |
|
|
$ |
7,245 |
|
|
$ |
16,356 |
|
|
$ |
12,979 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
2,587 |
|
|
|
3,052 |
|
|
|
5,879 |
|
|
|
5,721 |
|
Sales and marketing expenses |
|
|
1,746 |
|
|
|
2,003 |
|
|
|
3,922 |
|
|
|
3,503 |
|
General and administrative
expenses |
|
|
4,263 |
|
|
|
5,396 |
|
|
|
8,697 |
|
|
|
7,761 |
|
Depreciation and
amortization |
|
|
992 |
|
|
|
681 |
|
|
|
1,902 |
|
|
|
1,299 |
|
Total costs and
expenses |
|
|
9,588 |
|
|
|
11,132 |
|
|
|
20,400 |
|
|
|
18,284 |
|
Loss from
operations |
|
|
(2,532 |
) |
|
|
(3,887 |
) |
|
|
(4,044 |
) |
|
|
(5,305 |
) |
Interest income, net |
|
|
- |
|
|
|
37 |
|
|
|
31 |
|
|
|
77 |
|
Loss before income
taxes |
|
|
(2,532 |
) |
|
|
(3,850 |
) |
|
|
(4,013 |
) |
|
|
(5,228 |
) |
Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
|
$ |
(2,532 |
) |
|
$ |
(3,850 |
) |
|
$ |
(4,013 |
) |
|
$ |
(5,228 |
) |
Loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.51 |
) |
Weighted average number
of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
11,617,342 |
|
|
|
10,298,613 |
|
|
|
11,600,278 |
|
|
|
10,283,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
$ |
155 |
|
|
$ |
89 |
|
|
$ |
309 |
|
|
$ |
176 |
|
General and administrative expenses |
|
|
2,187 |
|
|
|
3,520 |
|
|
|
4,254 |
|
|
|
3,707 |
|
Total |
|
$ |
2,342 |
|
|
$ |
3,609 |
|
|
$ |
4,563 |
|
|
$ |
3,883 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,013 |
) |
|
$ |
(5,228 |
) |
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
1,902 |
|
|
|
1,299 |
|
Share-based compensation
expense |
|
|
4,563 |
|
|
|
3,883 |
|
Write-off of long-lived
assets |
|
|
104 |
|
|
|
30 |
|
Provision for bad debts |
|
|
265 |
|
|
|
326 |
|
Noncash lease expenses |
|
|
225 |
|
|
|
207 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
587 |
|
|
|
(1,687 |
) |
Prepaid expenses and other
current assets |
|
|
(139 |
) |
|
|
49 |
|
Other noncurrent assets |
|
|
65 |
|
|
|
169 |
|
Accounts payable |
|
|
585 |
|
|
|
44 |
|
Accrued expenses and other
current liabilities |
|
|
(927 |
) |
|
|
- |
|
Deferred revenue |
|
|
23 |
|
|
|
30 |
|
Operating lease liabilities |
|
|
(237 |
) |
|
|
(212 |
) |
Net cash provided by (used in)
operating activities |
|
|
3,003 |
|
|
|
(1,090 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(61 |
) |
|
|
(32 |
) |
Capitalized costs included in
intangible assets |
|
|
(3,088 |
) |
|
|
(2,913 |
) |
Net cash used in investing
activities |
|
|
(3,149 |
) |
|
|
(2,945 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from long-term loan |
|
|
2,152 |
|
|
|
- |
|
Net cash provided by financing
activities |
|
|
2,152 |
|
|
|
- |
|
Net increase (decrease)
in cash and cash equivalents |
|
$ |
2,006 |
|
|
$ |
(4,035 |
) |
Cash and cash equivalents at
beginning of period |
|
|
11,776 |
|
|
|
9,950 |
|
Cash and cash equivalents
at end of period |
|
$ |
13,782 |
|
|
$ |
5,915 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
|
$ |
1,056 |
|
|
$ |
318 |
|
Right-of-use assets obtained in
exchange of operating lease liabilities |
|
$ |
- |
|
|
$ |
3,042 |
|
Operating lease liabilities
arising from obtaining right-of-use assets |
|
$ |
- |
|
|
$ |
3,387 |
|
Use and Reconciliation of Non-GAAP Financial
Measures
Management evaluates the financial performance of our business
on a variety of key indicators, including non-GAAP metrics of
adjusted EBITDA, adjusted gross profit and adjusted gross margin.
Adjusted EBITDA is a financial measure equal to net loss, the most
directly comparable financial measure based on GAAP, excluding
interest income, net, depreciation and amortization, share-based
compensation expense, and write-off of long-lived assets and
others, as noted in the tables below. We define adjusted gross
profit as revenue less cost of revenue (exclusive of depreciation
and amortization), and adjusted gross margin as adjusted gross
profit as a percentage of revenue.
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(In
thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net loss |
|
$ |
(2,532 |
) |
|
$ |
(3,850 |
) |
|
$ |
(4,013 |
) |
|
$ |
(5,228 |
) |
Interest income, net |
|
|
- |
|
|
|
(37 |
) |
|
|
(31 |
) |
|
|
(77 |
) |
Depreciation and
amortization |
|
|
992 |
|
|
|
681 |
|
|
|
1,902 |
|
|
|
1,299 |
|
Share-based compensation
expense |
|
|
2,342 |
|
|
|
3,609 |
|
|
|
4,563 |
|
|
|
3,883 |
|
Write-off of long-lived assets
and others |
|
|
106 |
|
|
|
(47 |
) |
|
|
217 |
|
|
|
77 |
|
Adjusted
EBITDA |
|
$ |
908 |
|
|
$ |
356 |
|
|
$ |
2,638 |
|
|
$ |
(46 |
) |
The following is a reconciliation of gross profit, the most
directly comparable GAAP financial measure, to adjusted gross
profit:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(In
thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
7,056 |
|
|
$ |
7,245 |
|
|
$ |
16,356 |
|
|
$ |
12,979 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
2,587 |
|
|
|
3,052 |
|
|
|
5,879 |
|
|
|
5,721 |
|
Depreciation and amortization
of intangible assets |
|
|
934 |
|
|
|
617 |
|
|
|
1,784 |
|
|
|
1,171 |
|
Gross
profit |
|
|
3,535 |
|
|
|
3,576 |
|
|
|
8,693 |
|
|
|
6,087 |
|
Depreciation and amortization
of intangible assets |
|
|
934 |
|
|
|
617 |
|
|
|
1,784 |
|
|
|
1,171 |
|
Adjusted gross
profit |
|
$ |
4,469 |
|
|
$ |
4,193 |
|
|
$ |
10,477 |
|
|
$ |
7,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
50 |
% |
|
|
49 |
% |
|
|
53 |
% |
|
|
47 |
% |
Adjusted gross
margin |
|
|
63 |
% |
|
|
58 |
% |
|
|
64 |
% |
|
|
56 |
% |
In order to assist readers of our condensed consolidated
financial statements in understanding the operating results that
management uses to evaluate the business and for financial planning
purposes, we present non-GAAP measures of adjusted EBITDA, adjusted
gross profit and adjusted gross margin as supplemental measures of
our operating performance. We believe they provide useful
information to our investors as they eliminate the impact of
certain items that we do not consider indicative of our cash
operations and ongoing operating performance. In addition, we use
them as an integral part of our internal reporting to measure the
performance and operating strength of our business.
We believe adjusted EBITDA, adjusted gross profit and adjusted
gross margin are relevant and provide useful information frequently
used by securities analysts, investors and other interested parties
in their evaluation of the operating performance of companies
similar to ours and are indicators of the operational strength of
our business. We believe adjusted EBITDA eliminates the uneven
effect of considerable amounts of non-cash depreciation and
amortization, share-based compensation expense and the impact of
other non-recurring items, providing useful comparisons versus
prior periods or forecasts. Our adjusted gross profit is a measure
used by management in evaluating the business’s current operating
performance by excluding the impact of prior historical costs of
assets that are expensed systematically and allocated over the
estimated useful lives of the assets, which may not be indicative
of the current operating activity. Our adjusted gross profit is
calculated by using revenue, less cost of revenue (exclusive of
depreciation and amortization). We believe adjusted gross profit
provides useful information to our investors by eliminating the
impact of non-cash depreciation and amortization, and specifically
the amortization of software developed for internal use, providing
a baseline of our core operating results that allow for analyzing
trends in our underlying business consistently over multiple
periods. Adjusted gross margin is calculated as adjusted gross
profit as a percentage of revenue.
Adjusted EBITDA, adjusted gross profit and adjusted gross margin
are not intended to be performance measures that should be regarded
as an alternative to, or more meaningful than, financial measures
presented in accordance with GAAP. The way we measure adjusted
EBITDA, adjusted gross profit and adjusted gross margin may not be
comparable to similarly titled measures presented by other
companies, and may not be identical to corresponding measures used
in our various agreements.
SUPPLEMENTAL METRICS
The following metrics are intended as a supplement to the
financial statements found in this release and other information
furnished or filed with the SEC. These supplemental metrics are not
necessarily derived from any underlying financial statement
amounts. We believe these supplemental metrics help investors
understand trends within our business and evaluate the performance
of such trends quickly and effectively. In the event of
discrepancies between amounts in these tables and the Company's
historical disclosures or financial statements, readers should rely
on the Company's filings with the SEC and financial statements in
the Company's most recent earnings release.
We intend to periodically review and refine the definition,
methodology and appropriateness of each of these supplemental
metrics. As a result, metrics are subject to removal and/or
changes, and such changes could be material.
|
|
(Unaudited) |
(Dollars in thousands) |
|
Q3'18 |
|
Q4'18 |
|
Q1'19 |
|
Q2'19 |
|
Q3'19 |
|
Q4'19 |
|
Q1'20 |
|
Q2'20 |
Customer
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
idiCORE - billable customers(1) |
|
3,438 |
|
|
3,627 |
|
|
4,020 |
|
|
4,370 |
|
|
4,781 |
|
|
5,064 |
|
|
5,326 |
|
|
|
5,375 |
|
FOREWARN - users(2) |
|
7,872 |
|
|
11,397 |
|
|
15,444 |
|
|
19,721 |
|
|
23,853 |
|
|
30,577 |
|
|
36,506 |
|
|
|
40,857 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
64 |
% |
|
66 |
% |
|
67 |
% |
|
62 |
% |
|
66 |
% |
|
66 |
% |
|
69 |
% |
|
|
79 |
% |
Net revenue attrition %(4) |
|
6 |
% |
|
5 |
% |
|
5 |
% |
|
5 |
% |
|
6 |
% |
|
6 |
% |
|
8 |
% |
|
|
11 |
% |
Revenue from new customers(5) |
|
$ |
842 |
|
|
$ |
1,096 |
|
|
$ |
1,285 |
|
|
$ |
1,596 |
|
|
$ |
1,406 |
|
|
$ |
1,018 |
|
|
$ |
1,417 |
|
|
$ |
916 |
|
Base revenue from existing customers(6) |
|
$ |
2,934 |
|
|
$ |
3,127 |
|
|
$ |
3,593 |
|
|
$ |
4,480 |
|
|
$ |
5,578 |
|
|
$ |
6,690 |
|
|
$ |
6,629 |
|
|
$ |
5,047 |
|
Growth revenue from existing customers(7) |
|
$ |
584 |
|
|
$ |
485 |
|
|
$ |
856 |
|
|
$ |
1,169 |
|
|
$ |
1,273 |
|
|
$ |
1,342 |
|
|
$ |
1,254 |
|
|
$ |
1,093 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
3,812 |
|
|
$ |
4,112 |
|
|
$ |
4,894 |
|
|
$ |
6,153 |
|
|
$ |
7,085 |
|
|
$ |
7,652 |
|
|
$ |
8,108 |
|
|
$ |
6,857 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
1,846 |
|
|
$ |
1,883 |
|
|
$ |
2,069 |
|
|
$ |
2,287 |
|
|
$ |
2,286 |
|
|
$ |
2,431 |
|
|
$ |
2,498 |
|
|
$ |
2,427 |
|
Adjusted gross margin |
|
52 |
% |
|
54 |
% |
|
58 |
% |
|
63 |
% |
|
68 |
% |
|
68 |
% |
|
69 |
% |
|
|
65 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
548 |
|
|
$ |
595 |
|
|
$ |
839 |
|
|
$ |
1,093 |
|
|
$ |
1,171 |
|
|
$ |
1,399 |
|
|
$ |
1,191 |
|
|
$ |
200 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
386 |
|
|
$ |
421 |
|
|
$ |
600 |
|
|
$ |
765 |
|
|
$ |
836 |
|
|
$ |
983 |
|
|
$ |
794 |
|
|
$ |
159 |
|
Adjusted gross margin |
|
30 |
% |
|
29 |
% |
|
29 |
% |
|
30 |
% |
|
29 |
% |
|
30 |
% |
|
33 |
% |
|
|
20 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
37 |
|
|
46 |
|
|
47 |
|
|
48 |
|
|
48 |
|
|
51 |
|
|
51 |
|
|
|
53 |
|
Employees - support |
|
5 |
|
|
6 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
7 |
|
|
8 |
|
|
|
8 |
|
Employees - infrastructure |
|
9 |
|
|
11 |
|
|
12 |
|
|
12 |
|
|
13 |
|
|
11 |
|
|
13 |
|
|
|
12 |
|
Employees - engineering |
|
22 |
|
|
21 |
|
|
20 |
|
|
20 |
|
|
25 |
|
|
23 |
|
|
26 |
|
|
|
27 |
|
Employees - administration |
|
14 |
|
|
14 |
|
|
14 |
|
|
14 |
|
|
13 |
|
|
16 |
|
|
15 |
|
|
|
14 |
|
(1) |
We
define a billable customer of idiCORE as a single entity that
generated revenue in the last month of the period. Billable
customers are typically corporate organizations. In most cases,
corporate organizations will have multiple users and/or departments
purchasing our solutions, however, we count the entire organization
as a discrete customer. |
|
|
(2) |
We define a user of FOREWARN as a
unique person that has a subscription to use the FOREWARN service
as of the last day of the period. A unique person can only have one
user account. |
|
|
(3) |
Contractual revenue % represents
revenue generated from customers pursuant to pricing contracts
containing a monthly fee and any additional overage divided by
total revenue. Pricing contracts are generally annual contracts or
longer, with auto renewal. |
|
|
(4) |
Net revenue attrition is defined
as the revenue lost as a result of customer attrition, net of
reinstated customer revenue, excluding FOREWARN revenue. Revenue is
measured once a customer has generated revenue for six consecutive
months. Revenue is considered lost when all revenue from a customer
ceases for three consecutive months; revenue generated by a
customer after the three-month loss period is defined as reinstated
revenue. Net revenue attrition percentage is calculated on a
trailing twelve-month basis, the numerator of which is the revenue
lost during the period due to attrition, net of reinstated revenue,
and the denominator of which is total revenue based on an average
of total revenue at the beginning of each month during the
period. |
|
|
(5) |
Revenue from new customers
represents the total monthly revenue generated from new customers
in a given period. A customer is defined as a new customer during
the first six months of revenue generation. |
|
|
(6) |
Base revenue from existing
customers represents the total monthly revenue generated from
existing customers in a given period that does not exceed the
customers' trailing six-month average revenue. A customer is
defined as an existing customer six months after their initial
month of revenue. |
|
|
(7) |
Growth revenue from existing
customers represents the total monthly revenue generated from
existing customers in a given period in excess of the customers'
trailing six-month average revenue. |
|
|
(8) |
Platform revenue consists of both
contractual and transactional revenue generated from our data
fusion technology platform, CORE. It includes all revenue generated
through our idiCORE and FOREWARN solutions. The cost of revenue,
which consists primarily of data acquisition costs, remains
relatively fixed irrespective of revenue generation. |
|
|
(9) |
Services revenue consists of
transactional revenue generated from our idiVERIFIED service. The
cost of revenue, which consists primarily of third-party servicer
costs, is variable. |
Investor Relations Contact: Camilo Ramirez Red
Violet, Inc. 561-757-4500 ir@redviolet.com
Red Violet (NASDAQ:RDVT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red Violet (NASDAQ:RDVT)
Historical Stock Chart
From Jul 2023 to Jul 2024