Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended June 30, 2021.
“In the second quarter, we continued to demonstrate that as
economic conditions improve, so does demand for our innovative
solutions,” stated Derek Dubner, red violet’s CEO. “I’m extremely
proud of the team’s execution expanding customer relationships both
up and across markets. As a result, second quarter proved to be
another record quarter for us, with revenue increasing 54% to $10.9
million, net income of $1.8 million and adjusted EBITDA increasing
245% to $3.1 million. Our strong balance sheet and cash generation
from record revenue continue to drive expansion of our
capabilities.”
Second Quarter Financial Results
For the three months ended June 30, 2021 as compared to the
three months ended June 30, 2020:
- Total revenue increased 54% to $10.9
million. Platform revenue increased 54% to $10.6 million. Services
revenue increased 46% to $0.3 million.
- Net income was $1.8 million, inclusive
of a one-time gain of $2.2 million on the extinguishment of debt
from the forgiveness of our Cares Act Loan, compared to a loss of
$2.5 million.
- Adjusted EBITDA increased 245% to $3.1
million.
- Gross profit increased 95% to $6.9
million. Gross margin increased to 63% from 50%.
- Adjusted gross profit increased 83% to
$8.2 million. Adjusted gross margin increased to 75% from 63%.
- Generated $2.3 million in cash from
operating activities in the second quarter.
- Cash and cash equivalents were $13.9
million as of June 30, 2021.
Second Quarter and Recent Business
Highlights
- Revenue attributable to customer
contracts reached a record 81%. Customer contracts are generally
annual contracts or longer with auto renewal.
- Added over 230 new customers to
idiCORE™ during the second quarter, ending the quarter with 6,141
customers.
- Added over 8,700 users to FOREWARN®
during the second quarter, ending the quarter with 67,578 users.
Over 150 REALTOR® Associations throughout the U.S. are now
contracted to use FOREWARN.
- Continued expansion of leadership
talent and depth, with the addition of Jim Greenwell, GM –
Identity, and James Frasche, EVP – Property Solutions.
- Appointed Lisa Stanton as an
independent director of the Board of Directors, strengthening our
corporate governance and providing deep expertise in FinTech,
identity and security.
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 EBITDA margin, adjusted gross profit and
adjusted gross margin. Adjusted EBITDA is a financial measure equal
to net income (loss), the most directly comparable financial
measure based on US GAAP, excluding interest expense (income), net,
depreciation and amortization, share-based compensation expense,
gain on extinguishment of debt, litigation costs and write-off of
long-lived assets and others. We define adjusted EBITDA margin as
adjusted EBITDA as a percentage of revenue. 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 7739599. 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 7739599. 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 our strong
balance sheet and cash generation from record revenue continue to
drive expansion of our capabilities. 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,
2020 filed on March 10, 2021, 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, 2021 |
|
|
December 31, 2020 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,915 |
|
|
$ |
12,957 |
|
Accounts receivable, net of
allowance for doubtful accounts of $11 and $38 as of June 30, 2021
and December 31, 2020, respectively |
|
|
3,386 |
|
|
|
3,201 |
|
Prepaid expenses and other
current assets |
|
|
1,265 |
|
|
|
581 |
|
Total current assets |
|
|
18,566 |
|
|
|
16,739 |
|
Property and equipment,
net |
|
|
576 |
|
|
|
558 |
|
Intangible assets, net |
|
|
27,810 |
|
|
|
27,170 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
1,916 |
|
|
|
2,161 |
|
Other noncurrent assets |
|
|
137 |
|
|
|
139 |
|
Total
assets |
|
$ |
54,232 |
|
|
$ |
51,994 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,418 |
|
|
$ |
2,075 |
|
Accrued expenses and other
current liabilities |
|
|
761 |
|
|
|
1,458 |
|
Current portion of operating
lease liabilities |
|
|
584 |
|
|
|
552 |
|
Current portion of long-term
loan |
|
|
- |
|
|
|
449 |
|
Deferred revenue |
|
|
427 |
|
|
|
504 |
|
Total current liabilities |
|
|
3,190 |
|
|
|
5,038 |
|
Noncurrent operating lease
liabilities |
|
|
1,608 |
|
|
|
1,908 |
|
Long-term loan |
|
|
- |
|
|
|
1,703 |
|
Total
liabilities |
|
|
4,798 |
|
|
|
8,649 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par
value, 10,000,000 shares authorized, and 0 shares issued and
outstanding, as of June 30, 2021 and December 31, 2020 |
|
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 12,248,794 and 12,167,327 shares
issued and outstanding, as of June 30, 2021 and December 31,
2020 |
|
|
13 |
|
|
|
13 |
|
Additional paid-in
capital |
|
|
70,911 |
|
|
|
66,005 |
|
Accumulated deficit |
|
|
(21,490 |
) |
|
|
(22,673 |
) |
Total shareholders'
equity |
|
|
49,434 |
|
|
|
43,345 |
|
Total liabilities and
shareholders' equity |
|
$ |
54,232 |
|
|
$ |
51,994 |
|
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, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
10,879 |
|
|
$ |
7,056 |
|
|
$ |
21,096 |
|
|
$ |
16,356 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
2,720 |
|
|
|
2,587 |
|
|
|
5,481 |
|
|
|
5,879 |
|
Sales and marketing
expenses |
|
|
2,349 |
|
|
|
1,746 |
|
|
|
4,570 |
|
|
|
3,922 |
|
General and administrative
expenses |
|
|
4,890 |
|
|
|
4,263 |
|
|
|
9,440 |
|
|
|
8,697 |
|
Depreciation and
amortization |
|
|
1,330 |
|
|
|
992 |
|
|
|
2,588 |
|
|
|
1,902 |
|
Total costs and
expenses |
|
|
11,289 |
|
|
|
9,588 |
|
|
|
22,079 |
|
|
|
20,400 |
|
Loss from
operations |
|
|
(410 |
) |
|
|
(2,532 |
) |
|
|
(983 |
) |
|
|
(4,044 |
) |
Interest (expense) income,
net |
|
|
(4 |
) |
|
|
- |
|
|
|
(9 |
) |
|
|
31 |
|
Gain on extinguishment of
debt |
|
|
2,175 |
|
|
|
- |
|
|
|
2,175 |
|
|
|
- |
|
Income (loss) before
income taxes |
|
|
1,761 |
|
|
|
(2,532 |
) |
|
|
1,183 |
|
|
|
(4,013 |
) |
Income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net income
(loss) |
|
$ |
1,761 |
|
|
$ |
(2,532 |
) |
|
$ |
1,183 |
|
|
$ |
(4,013 |
) |
Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
|
$ |
(0.22 |
) |
|
$ |
0.10 |
|
|
$ |
(0.35 |
) |
Diluted |
|
$ |
0.13 |
|
|
$ |
(0.22 |
) |
|
$ |
0.09 |
|
|
$ |
(0.35 |
) |
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
12,269,412 |
|
|
|
11,617,342 |
|
|
|
12,238,475 |
|
|
|
11,600,278 |
|
Diluted |
|
|
13,560,714 |
|
|
|
11,617,342 |
|
|
|
13,487,806 |
|
|
|
11,600,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
158 |
|
|
$ |
155 |
|
|
$ |
314 |
|
|
$ |
309 |
|
General and administrative
expenses |
|
|
2,007 |
|
|
|
2,187 |
|
|
|
3,897 |
|
|
|
4,254 |
|
Total |
|
$ |
2,165 |
|
|
$ |
2,342 |
|
|
$ |
4,211 |
|
|
$ |
4,563 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,183 |
|
|
$ |
(4,013 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
2,588 |
|
|
|
1,902 |
|
Share-based compensation
expense |
|
|
4,211 |
|
|
|
4,563 |
|
Write-off of long-lived
assets |
|
|
24 |
|
|
|
104 |
|
Provision for bad debts |
|
|
62 |
|
|
|
265 |
|
Noncash lease expenses |
|
|
245 |
|
|
|
225 |
|
Interest expense |
|
|
11 |
|
|
|
- |
|
Gain on extinguishment of
debt |
|
|
(2,175 |
) |
|
|
- |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(247 |
) |
|
|
587 |
|
Prepaid expenses and other
current assets |
|
|
(684 |
) |
|
|
(139 |
) |
Other noncurrent assets |
|
|
2 |
|
|
|
65 |
|
Accounts payable |
|
|
(657 |
) |
|
|
585 |
|
Accrued expenses and other
current liabilities |
|
|
(685 |
) |
|
|
(927 |
) |
Deferred revenue |
|
|
(77 |
) |
|
|
23 |
|
Operating lease
liabilities |
|
|
(268 |
) |
|
|
(237 |
) |
Net cash provided by operating
activities |
|
|
3,533 |
|
|
|
3,003 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(155 |
) |
|
|
(61 |
) |
Capitalized costs included in
intangible assets |
|
|
(2,420 |
) |
|
|
(3,088 |
) |
Net cash used in investing
activities |
|
|
(2,575 |
) |
|
|
(3,149 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from long-term
loan |
|
|
- |
|
|
|
2,152 |
|
Net cash provided by financing
activities |
|
|
- |
|
|
|
2,152 |
|
Net increase in cash
and cash equivalents |
|
$ |
958 |
|
|
$ |
2,006 |
|
Cash and cash equivalents at
beginning of period |
|
|
12,957 |
|
|
|
11,776 |
|
Cash and cash
equivalents at end of period |
|
$ |
13,915 |
|
|
$ |
13,782 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income
taxes |
|
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
|
$ |
695 |
|
|
$ |
1,056 |
|
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 EBITDA margin, adjusted gross profit and
adjusted gross margin. Adjusted EBITDA is a financial measure equal
to net income (loss), the most directly comparable financial
measure based on GAAP, excluding interest expense (income), net,
depreciation and amortization, share-based compensation expense,
gain on extinguishment of debt, litigation costs and write-off of
long-lived assets and others, as noted in the tables below. We
define adjusted EBITDA margin as adjusted EBITDA as a percentage of
revenue. 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) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net income (loss) |
|
$ |
1,761 |
|
|
$ |
(2,532 |
) |
|
$ |
1,183 |
|
|
$ |
(4,013 |
) |
Interest expense (income),
net |
|
|
4 |
|
|
|
- |
|
|
|
9 |
|
|
|
(31 |
) |
Depreciation and
amortization |
|
|
1,330 |
|
|
|
992 |
|
|
|
2,588 |
|
|
|
1,902 |
|
Share-based compensation
expense |
|
|
2,165 |
|
|
|
2,342 |
|
|
|
4,211 |
|
|
|
4,563 |
|
Gain on extinguishment of
debt |
|
|
(2,175 |
) |
|
|
- |
|
|
|
(2,175 |
) |
|
|
- |
|
Litigation costs |
|
|
6 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
Write-off of long-lived assets
and others |
|
|
41 |
|
|
|
106 |
|
|
|
61 |
|
|
|
217 |
|
Adjusted
EBITDA |
|
$ |
3,132 |
|
|
$ |
908 |
|
|
$ |
6,003 |
|
|
$ |
2,638 |
|
Revenue |
|
$ |
10,879 |
|
|
$ |
7,056 |
|
|
$ |
21,096 |
|
|
$ |
16,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
margin |
|
|
16 |
% |
|
|
(36 |
%) |
|
|
6 |
% |
|
|
(25 |
%) |
Adjusted EBITDA
margin |
|
|
29 |
% |
|
|
13 |
% |
|
|
28 |
% |
|
|
16 |
% |
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) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
10,879 |
|
|
$ |
7,056 |
|
|
$ |
21,096 |
|
|
$ |
16,356 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
(2,720 |
) |
|
|
(2,587 |
) |
|
|
(5,481 |
) |
|
|
(5,879 |
) |
Depreciation and amortization
of intangible assets |
|
|
(1,272 |
) |
|
|
(934 |
) |
|
|
(2,475 |
) |
|
|
(1,784 |
) |
Gross
profit |
|
|
6,887 |
|
|
|
3,535 |
|
|
|
13,140 |
|
|
|
8,693 |
|
Depreciation and amortization
of intangible assets |
|
|
1,272 |
|
|
|
934 |
|
|
|
2,475 |
|
|
|
1,784 |
|
Adjusted gross
profit |
|
$ |
8,159 |
|
|
$ |
4,469 |
|
|
$ |
15,615 |
|
|
$ |
10,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
63 |
% |
|
|
50 |
% |
|
|
62 |
% |
|
|
53 |
% |
Adjusted gross
margin |
|
|
75 |
% |
|
|
63 |
% |
|
|
74 |
% |
|
|
64 |
% |
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
EBITDA margin, 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 EBITDA margin, 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.
Adjusted EBITDA margin is calculated as adjusted EBITDA as a
percentage of revenue. 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 EBITDA margin, 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 EBITDA margin,
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) |
|
Q3'19 |
|
|
Q4'19 |
|
|
Q1'20 |
|
|
Q2'20 |
|
|
Q3'20 |
|
|
Q4'20 |
|
|
Q1'21 |
|
|
Q2'21 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
idiCORE - billable customers(1) |
|
|
4,781 |
|
|
|
5,064 |
|
|
|
5,326 |
|
|
|
5,375 |
|
|
|
5,758 |
|
|
|
5,726 |
|
|
|
5,902 |
|
|
|
6,141 |
|
FOREWARN - users(2) |
|
|
23,853 |
|
|
|
30,577 |
|
|
|
36,506 |
|
|
|
40,857 |
|
|
|
44,927 |
|
|
|
48,377 |
|
|
|
58,831 |
|
|
|
67,578 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
66 |
% |
|
|
66 |
% |
|
|
69 |
% |
|
|
79 |
% |
|
|
68 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
Revenue attrition %(4) |
|
|
6 |
% |
|
|
6 |
% |
|
|
8 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
7 |
% |
|
|
6 |
% |
Revenue from new customers(5) |
|
$ |
1,406 |
|
|
$ |
1,018 |
|
|
$ |
1,417 |
|
|
$ |
916 |
|
|
$ |
726 |
|
|
$ |
877 |
|
|
$ |
967 |
|
|
$ |
929 |
|
Base revenue from existing customers(6) |
|
$ |
5,578 |
|
|
$ |
6,690 |
|
|
$ |
6,629 |
|
|
$ |
5,047 |
|
|
$ |
5,797 |
|
|
$ |
6,678 |
|
|
$ |
7,351 |
|
|
$ |
8,354 |
|
Growth revenue from existing customers(7) |
|
$ |
1,273 |
|
|
$ |
1,342 |
|
|
$ |
1,254 |
|
|
$ |
1,093 |
|
|
$ |
2,744 |
|
|
$ |
1,408 |
|
|
$ |
1,899 |
|
|
$ |
1,596 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
7,086 |
|
|
$ |
7,651 |
|
|
$ |
8,109 |
|
|
$ |
6,856 |
|
|
$ |
8,968 |
|
|
$ |
8,603 |
|
|
$ |
9,813 |
|
|
$ |
10,588 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
2,286 |
|
|
$ |
2,431 |
|
|
$ |
2,498 |
|
|
$ |
2,428 |
|
|
$ |
2,489 |
|
|
$ |
2,448 |
|
|
$ |
2,488 |
|
|
$ |
2,529 |
|
Adjusted gross margin |
|
|
68 |
% |
|
|
68 |
% |
|
|
69 |
% |
|
|
65 |
% |
|
|
72 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
76 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
1,171 |
|
|
$ |
1,399 |
|
|
$ |
1,191 |
|
|
$ |
200 |
|
|
$ |
299 |
|
|
$ |
360 |
|
|
$ |
404 |
|
|
$ |
291 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
836 |
|
|
$ |
983 |
|
|
$ |
794 |
|
|
$ |
159 |
|
|
$ |
214 |
|
|
$ |
246 |
|
|
$ |
273 |
|
|
$ |
191 |
|
Adjusted gross margin |
|
|
29 |
% |
|
|
30 |
% |
|
|
33 |
% |
|
|
21 |
% |
|
|
28 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
48 |
|
|
51 |
|
|
51 |
|
|
53 |
|
|
52 |
|
|
53 |
|
|
56 |
|
|
57 |
|
Employees - support |
|
8 |
|
|
7 |
|
|
8 |
|
|
8 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Employees - infrastructure |
|
13 |
|
|
11 |
|
|
13 |
|
|
12 |
|
|
12 |
|
|
14 |
|
|
15 |
|
|
16 |
|
Employees - engineering |
|
25 |
|
|
23 |
|
|
26 |
|
|
27 |
|
|
27 |
|
|
32 |
|
|
31 |
|
|
33 |
|
Employees - administration |
|
13 |
|
|
16 |
|
|
15 |
|
|
14 |
|
|
15 |
|
|
18 |
|
|
16 |
|
|
19 |
|
|
(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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