Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter and full year ended December 31, 2020.
“red violet delivered a solid quarter, concluding a year in
which we performed better in all key financial metrics compared to
2019 despite pandemic impacts,” stated Derek Dubner, red violet’s
CEO. “We saw rapid expansion in our profitability driven by
increasing platform revenue, demonstrating our ability to drive
highly profitable growth during a time of economic uncertainty.
While the fourth quarter is historically a seasonally slower
quarter for our business, I am extremely pleased with our
performance, and 2021 is off to a great start with the first
quarter pacing towards record revenue and adjusted EBITDA. As
economic conditions improve, we are confident our innovative
technology and customer-centric solutions are well positioned to
continue to drive strong growth in 2021 and
beyond.”
Fourth Quarter Financial Results
For the three months ended December 31, 2020 as compared to the
three months ended December 31, 2019:
- Total revenue decreased 1% to $9.0
million. Platform revenue increased 12% to $8.6 million. Services
revenue decreased 74% to $0.4 million.
- Net loss narrowed 61% to $1.9
million.
- Adjusted EBITDA increased 49% to $1.2
million.
- Gross profit increased 5% to $5.1
million. Gross margin increased to 57% from 54%.
- Adjusted gross profit increased 11% to
$6.3 million. Adjusted gross margin increased to 70% from 62%.
- Generated $1.8 million in cash from
operating activities in the fourth quarter.
- Cash and cash equivalents were $13.0
million as of December 31, 2020.
Full Year Financial Results
For the year ended December 31, 2020 as compared to the year
ended December 31, 2019:
- Total revenue increased 14% to $34.6
million. Platform revenue increased 26% to $32.5 million. Services
revenue decreased 54% to $2.0 million.
- Net loss narrowed 38% to $6.8
million.
- Adjusted EBITDA increased 213% to $5.9
million.
- Gross profit increased 26% to $19.3
million. Gross margin increased to 56% from 51%.
- Adjusted gross profit increased 29% to
$23.3 million. Adjusted gross margin increased to 67% from
60%.
- Generated $6.5 million in cash from
operating activities in 2020.
Fourth Quarter and Recent Business
Highlights
- Despite pandemic headwinds, strong
growth in our high-margin platform revenue allowed us to generate
over 90% contribution of total incremental revenue to adjusted
EBITDA, with a $4.3 million increase in total revenue in 2020
generating a $4.0 million increase in adjusted EBITDA.
- idiCORE™ ended the fourth quarter 2020
with 5,726 customers, a 13% increase from the fourth quarter
2019.
- FOREWARN® ended the fourth quarter 2020
with 48,377 users, a 58% increase from the fourth quarter of
2019.
- Added 12 product development and
infrastructure members to the technology team to address growth
opportunities.
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 US GAAP, excluding
interest expense (income), net, depreciation and amortization,
share-based compensation expense, write-off of long-lived assets
and others, and sales and use tax expense. 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 6558028. 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 6558028. 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 build proprietary technologies and apply
analytical capabilities to deliver identity intelligence. Our
technology powers critical solutions, which empower organizations
to operate with confidence. Our solutions enable the real-time
identification and location of people, businesses, assets and their
interrelationships. These solutions are used for purposes including
risk mitigation, due diligence, fraud detection and prevention,
regulatory compliance, and customer acquisition. Our intelligent
platform, CORE™, is purpose-built for the enterprise, yet flexible
enough for organizations of all sizes, bringing clarity to massive
datasets by transforming data into intelligence. Our solutions are
used today to enable frictionless commerce, to ensure safety, and
to reduce fraud and the concomitant expense borne by society. 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 whether 2021 is off
to a great start with the first quarter pacing towards record
revenue and adjusted EBITDA and whether our innovative technology
and customer-centric solutions are well positioned to continue to
drive strong growth in 2021 and beyond. 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, including the Form 10-K for year
ended December 31, 2020 expected to be filed today. 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.CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share
data)
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
12,957 |
|
|
$ |
11,776 |
|
Accounts receivable, net of
allowance for doubtful accounts of $38 and $40 as of December 31,
2020 and 2019, respectively |
|
|
3,201 |
|
|
|
3,543 |
|
Prepaid expenses and other
current assets |
|
|
581 |
|
|
|
722 |
|
Total current assets |
|
|
16,739 |
|
|
|
16,041 |
|
Property and equipment, net |
|
|
558 |
|
|
|
660 |
|
Intangible assets, net |
|
|
27,170 |
|
|
|
24,034 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
2,161 |
|
|
|
2,620 |
|
Other noncurrent assets |
|
|
139 |
|
|
|
289 |
|
Total
assets |
|
$ |
51,994 |
|
|
$ |
48,871 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,075 |
|
|
$ |
2,138 |
|
Accrued expenses and other
current liabilities |
|
|
1,458 |
|
|
|
1,571 |
|
Current portion of operating
lease liabilities |
|
|
552 |
|
|
|
491 |
|
Current portion of long-term
loan |
|
|
449 |
|
|
|
- |
|
Deferred revenue |
|
|
504 |
|
|
|
128 |
|
Total current liabilities |
|
|
5,038 |
|
|
|
4,328 |
|
Noncurrent operating lease
liabilities |
|
|
1,908 |
|
|
|
2,459 |
|
Long-term loan |
|
|
1,703 |
|
|
|
- |
|
Total
liabilities |
|
|
8,649 |
|
|
|
6,787 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par value,
10,000,000 shares authorized, and 0 shares issued and outstanding,
as of December 31, 2020 and 2019 |
|
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 12,167,327 and 11,657,912 shares
issued, 12,167,327 and 11,554,765 shares outstanding, as of
December 31, 2020 and 2019 |
|
|
13 |
|
|
|
12 |
|
Treasury stock, at cost, 0 and
103,147 shares as of December 31, 2020 and 2019 |
|
|
- |
|
|
|
(1,255 |
) |
Additional paid-in capital |
|
|
66,005 |
|
|
|
59,187 |
|
Accumulated deficit |
|
|
(22,673 |
) |
|
|
(15,860 |
) |
Total shareholders'
equity |
|
|
43,345 |
|
|
|
42,084 |
|
Total liabilities and
shareholders' equity |
|
$ |
51,994 |
|
|
$ |
48,871 |
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share
data)
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
34,586 |
|
|
$ |
30,286 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
11,276 |
|
|
|
12,257 |
|
Sales and marketing expenses |
|
|
8,098 |
|
|
|
7,528 |
|
General and administrative
expenses |
|
|
17,827 |
|
|
|
18,824 |
|
Depreciation and
amortization |
|
|
4,216 |
|
|
|
2,889 |
|
Total costs and
expenses |
|
|
41,417 |
|
|
|
41,498 |
|
Loss from
operations |
|
|
(6,831 |
) |
|
|
(11,212 |
) |
Interest income, net |
|
|
18 |
|
|
|
136 |
|
Loss before income
taxes |
|
|
(6,813 |
) |
|
|
(11,076 |
) |
Income taxes |
|
|
- |
|
|
|
- |
|
Net loss |
|
$ |
(6,813 |
) |
|
$ |
(11,076 |
) |
Loss per
share: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.57 |
) |
|
$ |
(1.03 |
) |
Weighted average number
of shares outstanding: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
11,863,413 |
|
|
|
10,762,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
609 |
|
|
$ |
454 |
|
General and administrative
expenses |
|
|
7,455 |
|
|
|
9,459 |
|
Total |
|
$ |
8,064 |
|
|
$ |
9,913 |
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in thousands)
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,813 |
) |
|
$ |
(11,076 |
) |
Adjustments to reconcile net loss
to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
4,216 |
|
|
|
2,889 |
|
Share-based compensation
expense |
|
|
8,064 |
|
|
|
9,913 |
|
Write-off of long-lived
assets |
|
|
337 |
|
|
|
30 |
|
Provision for bad debts |
|
|
406 |
|
|
|
582 |
|
Noncash lease expenses |
|
|
459 |
|
|
|
422 |
|
Interest expense |
|
|
12 |
|
|
|
- |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(64 |
) |
|
|
(1,860 |
) |
Prepaid expenses and other
current assets |
|
|
141 |
|
|
|
212 |
|
Other noncurrent assets |
|
|
63 |
|
|
|
339 |
|
Accounts payable |
|
|
(63 |
) |
|
|
(108 |
) |
Accrued expenses and other
current liabilities |
|
|
(125 |
) |
|
|
639 |
|
Deferred revenue |
|
|
376 |
|
|
|
102 |
|
Operating lease liabilities |
|
|
(490 |
) |
|
|
(437 |
) |
Net cash provided by operating
activities |
|
|
6,519 |
|
|
|
1,647 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(154 |
) |
|
|
(90 |
) |
Capitalized costs included in
intangible assets |
|
|
(5,508 |
) |
|
|
(5,912 |
) |
Net cash used in investing
activities |
|
|
(5,662 |
) |
|
|
(6,002 |
) |
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 |
) |
|
|
(1,255 |
) |
Net cash provided by financing
activities |
|
|
324 |
|
|
|
6,181 |
|
Net increase in cash and
cash equivalents |
|
$ |
1,181 |
|
|
$ |
1,826 |
|
Cash and cash equivalents at
beginning of period |
|
|
11,776 |
|
|
|
9,950 |
|
Cash and cash equivalents
at end of period |
|
$ |
12,957 |
|
|
$ |
11,776 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
|
$ |
1,838 |
|
|
$ |
788 |
|
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 US GAAP, excluding
interest expense (income), net, depreciation and amortization,
share-based compensation expense, write-off of long-lived assets
and others, and sales and use tax expense, 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 December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net loss |
|
$ |
(1,875 |
) |
|
$ |
(4,856 |
) |
|
$ |
(6,813 |
) |
|
$ |
(11,076 |
) |
Interest expense (income),
net |
|
|
6 |
|
|
|
(13 |
) |
|
|
(18 |
) |
|
|
(136 |
) |
Depreciation and
amortization |
|
|
1,196 |
|
|
|
840 |
|
|
|
4,216 |
|
|
|
2,889 |
|
Share-based compensation
expense |
|
|
1,648 |
|
|
|
4,623 |
|
|
|
8,064 |
|
|
|
9,913 |
|
Write-off of long-lived assets
and others |
|
|
222 |
|
|
|
3 |
|
|
|
474 |
|
|
|
98 |
|
Sales and use tax expense |
|
|
- |
|
|
|
205 |
|
|
|
- |
|
|
|
205 |
|
Adjusted
EBITDA |
|
$ |
1,197 |
|
|
$ |
802 |
|
|
$ |
5,923 |
|
|
$ |
1,893 |
|
The following is a reconciliation of gross profit, the most
directly comparable GAAP financial measure, to adjusted gross
profit:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
8,963 |
|
|
$ |
9,050 |
|
|
$ |
34,586 |
|
|
$ |
30,286 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
(2,694 |
) |
|
|
(3,414 |
) |
|
|
(11,276 |
) |
|
|
(12,257 |
) |
Depreciation and amortization
of intangible assets |
|
|
(1,143 |
) |
|
|
(777 |
) |
|
|
(3,990 |
) |
|
|
(2,637 |
) |
Gross
profit |
|
|
5,126 |
|
|
|
4,859 |
|
|
|
19,320 |
|
|
|
15,392 |
|
Depreciation and amortization
of intangible assets |
|
|
1,143 |
|
|
|
777 |
|
|
|
3,990 |
|
|
|
2,637 |
|
Adjusted gross
profit |
|
$ |
6,269 |
|
|
$ |
5,636 |
|
|
$ |
23,310 |
|
|
$ |
18,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
57 |
% |
|
|
54 |
% |
|
|
56 |
% |
|
|
51 |
% |
Adjusted gross
margin |
|
|
70 |
% |
|
|
62 |
% |
|
|
67 |
% |
|
|
60 |
% |
In order to assist readers of our 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) |
|
Q1'19 |
|
|
Q2'19 |
|
|
Q3'19 |
|
|
Q4'19 |
|
|
Q1'20 |
|
|
Q2'20 |
|
|
Q3'20 |
|
|
Q4'20 |
|
Customer
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
idiCORE - billable customers(1) |
|
|
4,020 |
|
|
|
4,370 |
|
|
|
4,781 |
|
|
|
5,064 |
|
|
|
5,326 |
|
|
|
5,375 |
|
|
|
5,758 |
|
|
|
5,726 |
|
FOREWARN - users(2) |
|
|
15,444 |
|
|
|
19,721 |
|
|
|
23,853 |
|
|
|
30,577 |
|
|
|
36,506 |
|
|
|
40,857 |
|
|
|
44,927 |
|
|
|
48,377 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
67 |
% |
|
|
62 |
% |
|
|
66 |
% |
|
|
66 |
% |
|
|
69 |
% |
|
|
79 |
% |
|
|
68 |
% |
|
|
77 |
% |
Revenue attrition %(4) |
|
|
5 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
8 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
Revenue from new customers(5) |
|
$ |
1,285 |
|
|
$ |
1,596 |
|
|
$ |
1,406 |
|
|
$ |
1,018 |
|
|
$ |
1,417 |
|
|
$ |
916 |
|
|
$ |
726 |
|
|
$ |
877 |
|
Base revenue from existing customers(6) |
|
$ |
3,593 |
|
|
$ |
4,480 |
|
|
$ |
5,578 |
|
|
$ |
6,690 |
|
|
$ |
6,629 |
|
|
$ |
5,047 |
|
|
$ |
5,797 |
|
|
$ |
6,678 |
|
Growth revenue from existing customers(7) |
|
$ |
856 |
|
|
$ |
1,169 |
|
|
$ |
1,273 |
|
|
$ |
1,342 |
|
|
$ |
1,254 |
|
|
$ |
1,093 |
|
|
$ |
2,744 |
|
|
$ |
1,408 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
4,894 |
|
|
$ |
6,153 |
|
|
$ |
7,085 |
|
|
$ |
7,652 |
|
|
$ |
8,108 |
|
|
$ |
6,857 |
|
|
$ |
8,968 |
|
|
$ |
8,604 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
2,069 |
|
|
$ |
2,287 |
|
|
$ |
2,286 |
|
|
$ |
2,431 |
|
|
$ |
2,498 |
|
|
$ |
2,427 |
|
|
$ |
2,489 |
|
|
$ |
2,447 |
|
Adjusted gross margin |
|
|
58 |
% |
|
|
63 |
% |
|
|
68 |
% |
|
|
68 |
% |
|
|
69 |
% |
|
|
65 |
% |
|
|
72 |
% |
|
|
72 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
839 |
|
|
$ |
1,093 |
|
|
$ |
1,171 |
|
|
$ |
1,399 |
|
|
$ |
1,191 |
|
|
$ |
200 |
|
|
$ |
299 |
|
|
$ |
360 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
600 |
|
|
$ |
765 |
|
|
$ |
836 |
|
|
$ |
983 |
|
|
$ |
794 |
|
|
$ |
159 |
|
|
$ |
214 |
|
|
$ |
246 |
|
Adjusted gross margin |
|
|
29 |
% |
|
|
30 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
33 |
% |
|
|
20 |
% |
|
|
28 |
% |
|
|
31 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
47 |
|
|
48 |
|
|
48 |
|
|
51 |
|
|
51 |
|
|
53 |
|
|
52 |
|
|
53 |
|
Employees - support |
|
6 |
|
|
7 |
|
|
8 |
|
|
7 |
|
|
8 |
|
|
8 |
|
|
9 |
|
|
9 |
|
Employees - infrastructure |
|
12 |
|
|
12 |
|
|
13 |
|
|
11 |
|
|
13 |
|
|
12 |
|
|
12 |
|
|
14 |
|
Employees - engineering |
|
20 |
|
|
20 |
|
|
25 |
|
|
23 |
|
|
26 |
|
|
27 |
|
|
27 |
|
|
32 |
|
Employees - administration |
|
14 |
|
|
14 |
|
|
13 |
|
|
16 |
|
|
15 |
|
|
14 |
|
|
15 |
|
|
18 |
|
(1) |
We define a billable customer of idiCORE as a single entity that
generated revenue in the last three months 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 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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