Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended September 30, 2020.
“We delivered another strong quarter during an
incredibly challenging time, further demonstrating the
applicability of our technology and solutions across diverse
markets and industries, as well as the necessity of integrating our
solutions to enable better data-driven decisioning,” stated Derek
Dubner, red violet’s CEO. “The momentum we experienced exiting the
second quarter continued throughout the third quarter, generating a
31% sequential increase in revenue to $9.3 million and 130%
sequential increase in adjusted EBITDA to a record $2.1 million. I
am extremely proud of the performance of our team and remain
optimistic in our ability to continue to drive growth for the
foreseeable future.”
Third Quarter Financial
Results
For the three months ended September 30, 2020 as
compared to the three months ended September 30, 2019:
- Total revenue increased 12% to $9.3
million. Platform revenue increased 27% to $9.0 million. Services
revenue decreased 75% to $0.3 million.
- Net loss narrowed 7% to $0.9
million.
- Adjusted EBITDA increased 84% to $2.1
million.
- Gross profit increased 24% to $5.5
million. Gross margin increased to 59% from 54%.
- Adjusted gross profit increased 28% to
$6.6 million. Adjusted gross margin increased to 71% from 62%.
- Generated $1.7 million in cash from
operating activities in the third quarter.
- Cash and cash equivalents were $12.4
million as of September 30, 2020.
Third Quarter and Recent Business
Highlights
- Our high-margin, platform revenue
demonstrated accelerated growth throughout the third quarter. As a
result, we generated a record 71% adjusted gross margin, producing
a record adjusted gross profit of $6.6 million. Adjusted EBITDA
increased 84% over prior year and increased 130% on a sequential
quarter basis to $2.1 million.
- Increased customer adoption of idiCORE™
with over 380 new customers added to the platform in the third
quarter.
- FOREWARN®, our subscription app-based
real estate solution, added over 4,000 users in the third
quarter.
- Strong revenue growth from existing
customer expansion. Growth revenue from existing customers
increased 116% over prior year and 151% on a sequential quarter
basis.
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 expense (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
1356743. 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 1356743. 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
and whether we will continue to drive growth for the foreseeable
future. 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) |
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
ASSETS: |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
12,441 |
|
|
$ |
11,776 |
|
Accounts receivable, net of
allowance for doubtful accounts of $20 and $40 as of September 30,
2020 and December 31, 2019, respectively |
|
2,920 |
|
|
|
3,543 |
|
Prepaid expenses and other
current assets |
|
616 |
|
|
|
722 |
|
Total current assets |
|
15,977 |
|
|
|
16,041 |
|
Property and equipment, net |
|
555 |
|
|
|
660 |
|
Intangible assets, net |
|
26,977 |
|
|
|
24,034 |
|
Goodwill |
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
2,279 |
|
|
|
2,620 |
|
Other noncurrent assets |
|
93 |
|
|
|
289 |
|
Total
assets |
$ |
51,108 |
|
|
$ |
48,871 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
2,199 |
|
|
$ |
2,138 |
|
Accrued expenses and other
current liabilities |
|
775 |
|
|
|
1,571 |
|
Current portion of operating
lease liabilities |
|
536 |
|
|
|
491 |
|
Current portion of long-term
loan |
|
1,059 |
|
|
|
- |
|
Deferred revenue |
|
180 |
|
|
|
128 |
|
Total current liabilities |
|
4,749 |
|
|
|
4,328 |
|
Noncurrent operating lease
liabilities |
|
2,052 |
|
|
|
2,459 |
|
Long-term loan |
|
1,093 |
|
|
|
- |
|
Total
liabilities |
|
7,894 |
|
|
|
6,787 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
Preferred stock—$0.001 par value,
10,000,000 shares authorized, and 0 shares issued and outstanding,
as of September 30, 2020 and December 31, 2019 |
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 12,371,665 and 11,657,912 shares
issued, 12,146,910 and 11,554,765 shares outstanding, as of
September 30, 2020 and December 31, 2019 |
|
13 |
|
|
|
12 |
|
Treasury stock, at cost, 224,755
and 103,147 shares as of September 30, 2020 and December 31,
2019 |
|
(3,083 |
) |
|
|
(1,255 |
) |
Additional paid-in capital |
|
67,082 |
|
|
|
59,187 |
|
Accumulated deficit |
|
(20,798 |
) |
|
|
(15,860 |
) |
Total shareholders'
equity |
|
43,214 |
|
|
|
42,084 |
|
Total liabilities and
shareholders' equity |
$ |
51,108 |
|
|
$ |
48,871 |
|
RED VIOLET, INC. |
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Amounts in thousands, except share data) |
(unaudited) |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
9,267 |
|
|
$ |
8,257 |
|
|
$ |
25,623 |
|
|
$ |
21,236 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
2,703 |
|
|
|
3,122 |
|
|
|
8,582 |
|
|
|
8,843 |
|
Sales and marketing expenses |
|
2,217 |
|
|
|
1,925 |
|
|
|
6,139 |
|
|
|
5,428 |
|
General and administrative
expenses |
|
4,147 |
|
|
|
3,498 |
|
|
|
12,844 |
|
|
|
11,259 |
|
Depreciation and
amortization |
|
1,118 |
|
|
|
750 |
|
|
|
3,020 |
|
|
|
2,049 |
|
Total costs and
expenses |
|
10,185 |
|
|
|
9,295 |
|
|
|
30,585 |
|
|
|
27,579 |
|
Loss from
operations |
|
(918 |
) |
|
|
(1,038 |
) |
|
|
(4,962 |
) |
|
|
(6,343 |
) |
Interest (expense) income,
net |
|
(7 |
) |
|
|
46 |
|
|
|
24 |
|
|
|
123 |
|
Loss before income
taxes |
|
(925 |
) |
|
|
(992 |
) |
|
|
(4,938 |
) |
|
|
(6,220 |
) |
Income taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
$ |
(925 |
) |
|
$ |
(992 |
) |
|
$ |
(4,938 |
) |
|
$ |
(6,220 |
) |
Loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.59 |
) |
Weighted average number
of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
12,072,716 |
|
|
|
10,917,673 |
|
|
|
11,758,907 |
|
|
|
10,497,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
$ |
151 |
|
|
$ |
114 |
|
|
$ |
460 |
|
|
$ |
290 |
|
General and administrative
expenses |
|
1,702 |
|
|
|
1,293 |
|
|
|
5,956 |
|
|
|
5,000 |
|
Total |
$ |
1,853 |
|
|
$ |
1,407 |
|
|
$ |
6,416 |
|
|
$ |
5,290 |
|
RED VIOLET, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Amounts in thousands) |
(unaudited) |
|
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
|
|
|
Net loss |
$ |
(4,938 |
) |
|
$ |
(6,220 |
) |
Adjustments to reconcile net loss
to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
3,020 |
|
|
|
2,049 |
|
Share-based compensation
expense |
|
6,416 |
|
|
|
5,290 |
|
Write-off of long-lived
assets |
|
117 |
|
|
|
30 |
|
Provision for bad debts |
|
360 |
|
|
|
398 |
|
Noncash lease expenses |
|
341 |
|
|
|
313 |
|
Interest expense |
|
7 |
|
|
|
- |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
263 |
|
|
|
(1,458 |
) |
Prepaid expenses and other
current assets |
|
106 |
|
|
|
40 |
|
Other noncurrent assets |
|
109 |
|
|
|
254 |
|
Accounts payable |
|
61 |
|
|
|
235 |
|
Accrued expenses and other
current liabilities |
|
(803 |
) |
|
|
(183 |
) |
Deferred revenue |
|
52 |
|
|
|
9 |
|
Operating lease liabilities |
|
(362 |
) |
|
|
(322 |
) |
Net cash provided by operating
activities |
|
4,749 |
|
|
|
435 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(98 |
) |
|
|
(71 |
) |
Capitalized costs included in
intangible assets |
|
(4,310 |
) |
|
|
(4,413 |
) |
Net cash used in investing
activities |
|
(4,408 |
) |
|
|
(4,484 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from issuance of shares,
net of issuance costs |
|
- |
|
|
|
7,436 |
|
Proceeds from long-term loan |
|
2,152 |
|
|
|
- |
|
Taxes paid related to net share
settlement of vesting of restricted stock units |
|
(1,828 |
) |
|
|
- |
|
Net cash provided by financing
activities |
|
324 |
|
|
|
7,436 |
|
Net increase in cash and
cash equivalents |
$ |
665 |
|
|
$ |
3,387 |
|
Cash and cash equivalents at
beginning of period |
|
11,776 |
|
|
|
9,950 |
|
Cash and cash equivalents
at end of period |
$ |
12,441 |
|
|
$ |
13,337 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
$ |
1,480 |
|
|
$ |
526 |
|
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 expense (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 September 30, |
|
|
Three Months Ended |
|
|
Nine Months Ended September 30, |
|
(In
thousands) |
2020 |
|
|
2019 |
|
|
June 30, 2020 |
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(925 |
) |
|
$ |
(992 |
) |
|
$ |
(2,532 |
) |
|
$ |
(4,938 |
) |
|
$ |
(6,220 |
) |
Interest expense (income),
net |
|
7 |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(24 |
) |
|
|
(123 |
) |
Depreciation and
amortization |
|
1,118 |
|
|
|
750 |
|
|
|
992 |
|
|
|
3,020 |
|
|
|
2,049 |
|
Share-based compensation
expense |
|
1,853 |
|
|
|
1,407 |
|
|
|
2,342 |
|
|
|
6,416 |
|
|
|
5,290 |
|
Write-off of long-lived assets
and others |
|
35 |
|
|
|
18 |
|
|
|
106 |
|
|
|
252 |
|
|
|
95 |
|
Adjusted
EBITDA |
$ |
2,088 |
|
|
$ |
1,137 |
|
|
$ |
908 |
|
|
$ |
4,726 |
|
|
$ |
1,091 |
|
The following is a reconciliation of gross
profit, the most directly comparable GAAP financial measure, to
adjusted gross profit:
|
Three Months Ended September 30, |
|
|
Three Months Ended |
|
|
Nine Months Ended September 30, |
|
(In
thousands) |
2020 |
|
|
2019 |
|
|
June 30, 2020 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
9,267 |
|
|
$ |
8,257 |
|
|
$ |
7,056 |
|
|
$ |
25,623 |
|
|
$ |
21,236 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
(2,703 |
) |
|
|
(3,122 |
) |
|
|
(2,587 |
) |
|
|
(8,582 |
) |
|
|
(8,843 |
) |
Depreciation and amortization
of intangible assets |
|
(1,063 |
) |
|
|
(689 |
) |
|
|
(934 |
) |
|
|
(2,847 |
) |
|
|
(1,860 |
) |
Gross
profit |
|
5,501 |
|
|
|
4,446 |
|
|
|
3,535 |
|
|
|
14,194 |
|
|
|
10,533 |
|
Depreciation and amortization
of intangible assets |
|
1,063 |
|
|
|
689 |
|
|
|
934 |
|
|
|
2,847 |
|
|
|
1,860 |
|
Adjusted gross
profit |
$ |
6,564 |
|
|
$ |
5,135 |
|
|
$ |
4,469 |
|
|
$ |
17,041 |
|
|
$ |
12,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
59 |
% |
|
|
54 |
% |
|
|
50 |
% |
|
|
55 |
% |
|
|
50 |
% |
Adjusted gross
margin |
|
71 |
% |
|
|
62 |
% |
|
|
63 |
% |
|
|
67 |
% |
|
|
58 |
% |
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) |
Q4'18 |
|
|
Q1'19 |
|
|
Q2'19 |
|
|
Q3'19 |
|
|
Q4'19 |
|
|
Q1'20 |
|
|
Q2'20 |
|
|
Q3'20 |
|
Customer
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
idiCORE - billable customers(1) |
|
3,627 |
|
|
|
4,020 |
|
|
|
4,370 |
|
|
|
4,781 |
|
|
|
5,064 |
|
|
|
5,326 |
|
|
|
5,375 |
|
|
|
5,758 |
|
FOREWARN - users(2) |
|
11,397 |
|
|
|
15,444 |
|
|
|
19,721 |
|
|
|
23,853 |
|
|
|
30,577 |
|
|
|
36,506 |
|
|
|
40,857 |
|
|
|
44,927 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
66 |
% |
|
|
67 |
% |
|
|
62 |
% |
|
|
66 |
% |
|
|
66 |
% |
|
|
69 |
% |
|
|
79 |
% |
|
|
68 |
% |
Revenue attrition %(4) |
|
5 |
% |
|
|
5 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
8 |
% |
|
|
11 |
% |
|
|
10 |
% |
Revenue from new customers(5) |
$ |
1,096 |
|
|
$ |
1,285 |
|
|
$ |
1,596 |
|
|
$ |
1,406 |
|
|
$ |
1,018 |
|
|
$ |
1,417 |
|
|
$ |
916 |
|
|
$ |
726 |
|
Base revenue from existing customers(6) |
$ |
3,127 |
|
|
$ |
3,593 |
|
|
$ |
4,480 |
|
|
$ |
5,578 |
|
|
$ |
6,690 |
|
|
$ |
6,629 |
|
|
$ |
5,047 |
|
|
$ |
5,797 |
|
Growth revenue from existing customers(7) |
$ |
485 |
|
|
$ |
856 |
|
|
$ |
1,169 |
|
|
$ |
1,273 |
|
|
$ |
1,342 |
|
|
$ |
1,254 |
|
|
$ |
1,093 |
|
|
$ |
2,744 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
$ |
4,112 |
|
|
$ |
4,894 |
|
|
$ |
6,153 |
|
|
$ |
7,085 |
|
|
$ |
7,652 |
|
|
$ |
8,108 |
|
|
$ |
6,857 |
|
|
$ |
8,968 |
|
Cost of revenue (exclusive of depreciation and amortization) |
$ |
1,883 |
|
|
$ |
2,069 |
|
|
$ |
2,287 |
|
|
$ |
2,286 |
|
|
$ |
2,431 |
|
|
$ |
2,498 |
|
|
$ |
2,427 |
|
|
$ |
2,489 |
|
Adjusted gross margin |
|
54 |
% |
|
|
58 |
% |
|
|
63 |
% |
|
|
68 |
% |
|
|
68 |
% |
|
|
69 |
% |
|
|
65 |
% |
|
|
72 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
$ |
595 |
|
|
$ |
839 |
|
|
$ |
1,093 |
|
|
$ |
1,171 |
|
|
$ |
1,399 |
|
|
$ |
1,191 |
|
|
$ |
200 |
|
|
$ |
299 |
|
Cost of revenue (exclusive of depreciation and amortization) |
$ |
421 |
|
|
$ |
600 |
|
|
$ |
765 |
|
|
$ |
836 |
|
|
$ |
983 |
|
|
$ |
794 |
|
|
$ |
159 |
|
|
$ |
214 |
|
Adjusted gross margin |
|
29 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
33 |
% |
|
|
20 |
% |
|
|
28 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
46 |
|
|
47 |
|
|
48 |
|
|
48 |
|
|
51 |
|
|
51 |
|
|
53 |
|
|
52 |
|
Employees - support |
6 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
7 |
|
|
8 |
|
|
8 |
|
|
9 |
|
Employees - infrastructure |
11 |
|
|
12 |
|
|
12 |
|
|
13 |
|
|
11 |
|
|
13 |
|
|
12 |
|
|
12 |
|
Employees - engineering |
21 |
|
|
20 |
|
|
20 |
|
|
25 |
|
|
23 |
|
|
26 |
|
|
27 |
|
|
27 |
|
Employees - administration |
14 |
|
|
14 |
|
|
14 |
|
|
13 |
|
|
16 |
|
|
15 |
|
|
14 |
|
|
15 |
|
(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) |
|
Revenue attrition is defined as the revenue lost as a result of
customer attrition, net of reinstated customer revenue. It excludes
expansion revenue and revenue from FOREWARN. 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.
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 RamirezRed Violet,
Inc.561-757-4500ir@redviolet.com
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