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, 2021.
“We are pleased to report a solid fourth quarter and conclusion
to an incredible year, achieving records across the board and
reaching the major milestone of GAAP profitability for the full
year,” stated Derek Dubner, red violet’s CEO. “As we reinvest in
our business in furtherance of the execution of our strategic plan,
we continue to see strong demand for our innovative solutions and
greater pipeline expansion from larger enterprise prospects. We
continue to add talent and depth across the organization,
strengthening our go-to-market resources and creating new
opportunities above and beyond our already robust pipeline. We
expect 2022 to be an exciting year with the first two months of
revenue off to a record start.”
Fourth Quarter Financial Results
For the three months ended December 31, 2021 as compared to the
three months ended December 31, 2020:
- Total revenue increased 26% to $11.3
million. Platform revenue increased 25% to $10.8 million. Services
revenue increased 31% to $0.5 million.
- Net loss narrowed 5% to $1.8
million.
- Adjusted EBITDA increased 9% to $1.3
million.
- Gross profit increased 35% to $6.9
million. Gross margin increased to 62% from 57%.
- Adjusted gross profit increased 33% to
$8.3 million. Adjusted gross margin increased to 74% from 70%.
- Cash from operating activities
increased 10% to $2.0 million.
- Cash and cash equivalents were $34.3
million as of December 31, 2021.
Full Year Financial Results
For the year ended December 31, 2021 as compared to the year
ended December 31, 2020:
- Total revenue increased 27% to $44.0
million. Platform revenue increased 31% to $42.5 million. Services
revenue decreased 25% to $1.5 million.
- Net income was $0.7 million compared to
a loss of $6.8 million.
- Adjusted EBITDA increased 85% to $10.9
million.
- Gross profit increased 43% to $27.7
million. Gross margin increased to 63% from 56%.
- Adjusted gross profit increased 41% to
$32.8 million. Adjusted gross margin increased to 75% from
67%.
- Cash from operating activities
increased 37% to $8.9 million.
Three-Year Outlook
To provide our investors greater clarity into management’s view
of the business, we are providing red violet’s three-year base case
outlook. Based on a purely organic scenario, management is
targeting annual revenue to reach or exceed $100 million over the
next three years. Given the strong operating leverage in our
business, at the time red violet achieves annual revenue of $100
million, we believe adjusted gross margin will exceed 80% with
adjusted EBITDA margin of approximately 40%.
Fourth Quarter and Recent Business
Highlights
- Raised $21.0 million in growth
financing from existing investors through the sale of 552,915
shares of common stock at a price of $38.00 per share.
- IDI™ ended the fourth quarter 2021 with
6,548 customers, a 14% increase from the fourth quarter 2020.
- FOREWARN® ended the fourth quarter 2021
with 82,419 users, a 70% increase from the fourth quarter
2020.
- Continue to see strength in the
onboarding of higher-tier customers, with 47 customers contributing
over $100 thousand of revenue in 2021 compared to 34 customers in
2020.
- Revenue attributable to customer
contracts reached a record 80% for 2021, a 7-percentage point
increase from 2020. Customer contracts are generally annual
contracts or longer, with auto renewal.
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 (loss) income, the most directly comparable financial
measure based on US GAAP, excluding interest (income) expense, net,
income tax expense, 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.
With respect to our three-year outlook for adjusted gross margin
and adjusted EBITDA margin, a reconciliation of these non-GAAP
measures to their corresponding GAAP measures is not available
without unreasonable effort due to the variability and complexity
of the reconciling items described above that we exclude from these
non-GAAP three-year outlook measures. The variability of these
items may have a significant impact on our future GAAP financial
results and, as a result, we are unable to prepare the
forward-looking statement of income prepared in accordance with
GAAP that would be required to produce such a reconciliation.
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 9771328. 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 9771328. 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 2022 will be
an exciting year for red violet, whether our annual revenue will
reach or exceed $100 million over the next three years and whether
adjusted gross margin will exceed 80% with adjusted EBITDA margin
of approximately 40% at the time red violet achieves annual revenue
of $100 million. 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, including the Form 10-K for year ended December
31, 2021 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, 2021 |
|
|
December 31, 2020 |
|
ASSETS: |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
34,258 |
|
|
$ |
12,957 |
|
Accounts receivable, net of
allowance for doubtful accounts of $28 and $38 as of December 31,
2021 and 2020, respectively |
|
3,736 |
|
|
|
3,201 |
|
Prepaid expenses and other
current assets |
|
599 |
|
|
|
581 |
|
Total current assets |
|
38,593 |
|
|
|
16,739 |
|
Property and equipment,
net |
|
577 |
|
|
|
558 |
|
Intangible assets, net |
|
28,181 |
|
|
|
27,170 |
|
Goodwill |
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
1,661 |
|
|
|
2,161 |
|
Other noncurrent assets |
|
137 |
|
|
|
139 |
|
Total
assets |
$ |
74,376 |
|
|
$ |
51,994 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
1,605 |
|
|
$ |
2,075 |
|
Accrued expenses and other
current liabilities |
|
395 |
|
|
|
1,458 |
|
Current portion of operating
lease liabilities |
|
617 |
|
|
|
552 |
|
Current portion of long-term
loan |
|
- |
|
|
|
449 |
|
Deferred revenue |
|
841 |
|
|
|
504 |
|
Total current liabilities |
|
3,458 |
|
|
|
5,038 |
|
Noncurrent operating lease
liabilities |
|
1,291 |
|
|
|
1,908 |
|
Long-term loan |
|
- |
|
|
|
1,703 |
|
Deferred tax liabilities |
|
198 |
|
|
|
- |
|
Total
liabilities |
|
4,947 |
|
|
|
8,649 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
Preferred stock—$0.001 par
value, 10,000,000 shares authorized, and 0 shares issued and
outstanding, as of December 31, 2021 and 2020 |
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 13,488,540 and 12,167,327 shares
issued and outstanding, as of December 31, 2021 and 2020 |
|
13 |
|
|
|
13 |
|
Additional paid-in
capital |
|
91,434 |
|
|
|
66,005 |
|
Accumulated deficit |
|
(22,018 |
) |
|
|
(22,673 |
) |
Total shareholders'
equity |
|
69,429 |
|
|
|
43,345 |
|
Total liabilities and
shareholders' equity |
$ |
74,376 |
|
|
$ |
51,994 |
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share
data)
|
|
Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
44,022 |
|
|
$ |
34,586 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
11,195 |
|
|
|
11,276 |
|
Sales and marketing
expenses |
|
|
8,932 |
|
|
|
8,098 |
|
General and administrative
expenses |
|
|
19,811 |
|
|
|
17,827 |
|
Depreciation and
amortization |
|
|
5,399 |
|
|
|
4,216 |
|
Total costs and
expenses |
|
|
45,337 |
|
|
|
41,417 |
|
Loss from
operations |
|
|
(1,315 |
) |
|
|
(6,831 |
) |
Interest (expense) income,
net |
|
|
(7 |
) |
|
|
18 |
|
Gain on extinguishment of
debt |
|
|
2,175 |
|
|
|
- |
|
Income (loss) before
income taxes |
|
|
853 |
|
|
|
(6,813 |
) |
Income tax expense |
|
|
198 |
|
|
|
- |
|
Net income
(loss) |
|
$ |
655 |
|
|
$ |
(6,813 |
) |
Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.05 |
|
|
$ |
(0.57 |
) |
Diluted |
|
$ |
0.05 |
|
|
$ |
(0.57 |
) |
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
12,597,316 |
|
|
|
11,863,413 |
|
Diluted |
|
|
13,403,041 |
|
|
|
11,863,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
562 |
|
|
$ |
609 |
|
General and administrative
expenses |
|
|
6,053 |
|
|
|
7,455 |
|
Total |
|
$ |
6,615 |
|
|
$ |
8,064 |
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in thousands)
|
Year Ended December 31, |
|
|
2021 |
|
|
2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
655 |
|
|
$ |
(6,813 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
5,399 |
|
|
|
4,216 |
|
Share-based compensation
expense |
|
6,615 |
|
|
|
8,064 |
|
Write-off of long-lived
assets |
|
32 |
|
|
|
337 |
|
Provision for bad debts |
|
95 |
|
|
|
406 |
|
Noncash lease expenses |
|
500 |
|
|
|
459 |
|
Interest expense |
|
11 |
|
|
|
12 |
|
Gain on extinguishment of
debt |
|
(2,175 |
) |
|
|
- |
|
Deferred income tax
expense |
|
198 |
|
|
|
- |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(630 |
) |
|
|
(64 |
) |
Prepaid expenses and other
current assets |
|
(18 |
) |
|
|
141 |
|
Other noncurrent assets |
|
2 |
|
|
|
63 |
|
Accounts payable |
|
(470 |
) |
|
|
(63 |
) |
Accrued expenses and other
current liabilities |
|
(1,051 |
) |
|
|
(125 |
) |
Deferred revenue |
|
337 |
|
|
|
376 |
|
Operating lease
liabilities |
|
(552 |
) |
|
|
(490 |
) |
Net cash provided by operating
activities |
|
8,948 |
|
|
|
6,519 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(280 |
) |
|
|
(154 |
) |
Capitalized costs included in
intangible assets |
|
(4,964 |
) |
|
|
(5,508 |
) |
Net cash used in investing
activities |
|
(5,244 |
) |
|
|
(5,662 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from issuance of
shares, net of issuance costs |
|
20,924 |
|
|
|
- |
|
Proceeds from long-term
loan |
|
- |
|
|
|
2,152 |
|
Taxes paid related to net
share settlement of vesting of restricted stock units |
|
(3,327 |
) |
|
|
(1,828 |
) |
Net cash provided by financing
activities |
|
17,597 |
|
|
|
324 |
|
Net increase in cash
and cash equivalents |
$ |
21,301 |
|
|
$ |
1,181 |
|
Cash and cash equivalents at
beginning of period |
|
12,957 |
|
|
|
11,776 |
|
Cash and cash
equivalents at end of period |
$ |
34,258 |
|
|
$ |
12,957 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
Cash paid for income
taxes |
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
$ |
1,217 |
|
|
$ |
1,838 |
|
Retirement of treasury
stock |
$ |
3,327 |
|
|
$ |
3,083 |
|
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 (loss) income, the most directly comparable financial
measure based on US GAAP, excluding interest (income) expense, net,
income tax expense, 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 December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net (loss) income |
$ |
(1,784 |
) |
|
$ |
(1,875 |
) |
|
$ |
655 |
|
|
$ |
(6,813 |
) |
Interest (income) expense,
net |
|
(1 |
) |
|
|
6 |
|
|
|
7 |
|
|
|
(18 |
) |
Income tax expense |
|
198 |
|
|
|
- |
|
|
|
198 |
|
|
|
- |
|
Depreciation and
amortization |
|
1,466 |
|
|
|
1,196 |
|
|
|
5,399 |
|
|
|
4,216 |
|
Share-based compensation
expense |
|
1,418 |
|
|
|
1,648 |
|
|
|
6,615 |
|
|
|
8,064 |
|
Gain on extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
(2,175 |
) |
|
|
- |
|
Litigation costs |
|
- |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
Write-off of long-lived assets
and others |
|
9 |
|
|
|
222 |
|
|
|
104 |
|
|
|
474 |
|
Adjusted
EBITDA |
$ |
1,306 |
|
|
$ |
1,197 |
|
|
$ |
10,929 |
|
|
$ |
5,923 |
|
Revenue |
$ |
11,258 |
|
|
$ |
8,963 |
|
|
$ |
44,022 |
|
|
$ |
34,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
margin |
|
(16 |
%) |
|
|
(21 |
%) |
|
|
1 |
% |
|
|
(20 |
%) |
Adjusted EBITDA
margin |
|
12 |
% |
|
|
13 |
% |
|
|
25 |
% |
|
|
17 |
% |
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) |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
$ |
11,258 |
|
|
$ |
8,963 |
|
|
$ |
44,022 |
|
|
$ |
34,586 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
(2,927 |
) |
|
|
(2,694 |
) |
|
|
(11,195 |
) |
|
|
(11,276 |
) |
Depreciation and amortization
of intangible assets |
|
(1,407 |
) |
|
|
(1,143 |
) |
|
|
(5,170 |
) |
|
|
(3,990 |
) |
Gross
profit |
|
6,924 |
|
|
|
5,126 |
|
|
|
27,657 |
|
|
|
19,320 |
|
Depreciation and amortization
of intangible assets |
|
1,407 |
|
|
|
1,143 |
|
|
|
5,170 |
|
|
|
3,990 |
|
Adjusted gross
profit |
$ |
8,331 |
|
|
$ |
6,269 |
|
|
$ |
32,827 |
|
|
$ |
23,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
62 |
% |
|
|
57 |
% |
|
|
63 |
% |
|
|
56 |
% |
Adjusted gross
margin |
|
74 |
% |
|
|
70 |
% |
|
|
75 |
% |
|
|
67 |
% |
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 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) |
|
Q1'20 |
|
|
Q2'20 |
|
|
Q3'20 |
|
|
Q4'20 |
|
|
Q1'21 |
|
|
Q2'21 |
|
|
Q3'21 |
|
|
Q4'21 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI - billable customers(1) |
|
|
5,326 |
|
|
|
5,375 |
|
|
|
5,758 |
|
|
|
5,726 |
|
|
|
5,902 |
|
|
|
6,141 |
|
|
|
6,314 |
|
|
|
6,548 |
|
FOREWARN - users(2) |
|
|
36,506 |
|
|
|
40,857 |
|
|
|
44,927 |
|
|
|
48,377 |
|
|
|
58,831 |
|
|
|
67,578 |
|
|
|
74,377 |
|
|
|
82,419 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
69 |
% |
|
|
79 |
% |
|
|
68 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
80 |
% |
|
|
79 |
% |
Revenue attrition %(4) |
|
|
8 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
4 |
% |
Revenue from new customers(5) |
|
$ |
1,417 |
|
|
$ |
916 |
|
|
$ |
726 |
|
|
$ |
877 |
|
|
$ |
967 |
|
|
$ |
929 |
|
|
$ |
876 |
|
|
$ |
920 |
|
Base revenue from existing customers(6) |
|
$ |
6,629 |
|
|
$ |
5,047 |
|
|
$ |
5,797 |
|
|
$ |
6,678 |
|
|
$ |
7,351 |
|
|
$ |
8,354 |
|
|
$ |
9,187 |
|
|
$ |
9,114 |
|
Growth revenue from existing customers(7) |
|
$ |
1,254 |
|
|
$ |
1,093 |
|
|
$ |
2,744 |
|
|
$ |
1,408 |
|
|
$ |
1,899 |
|
|
$ |
1,596 |
|
|
$ |
1,605 |
|
|
$ |
1,224 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
8,109 |
|
|
$ |
6,856 |
|
|
$ |
8,968 |
|
|
$ |
8,603 |
|
|
$ |
9,813 |
|
|
$ |
10,588 |
|
|
$ |
11,296 |
|
|
$ |
10,787 |
|
Cost of revenue (exclusive ofdepreciation and amortization) |
|
$ |
2,498 |
|
|
$ |
2,428 |
|
|
$ |
2,489 |
|
|
$ |
2,448 |
|
|
$ |
2,488 |
|
|
$ |
2,529 |
|
|
$ |
2,525 |
|
|
$ |
2,606 |
|
Adjusted gross margin |
|
|
69 |
% |
|
|
65 |
% |
|
|
72 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
76 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
1,191 |
|
|
$ |
200 |
|
|
$ |
299 |
|
|
$ |
360 |
|
|
$ |
404 |
|
|
$ |
291 |
|
|
$ |
372 |
|
|
$ |
471 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
794 |
|
|
$ |
159 |
|
|
$ |
214 |
|
|
$ |
246 |
|
|
$ |
273 |
|
|
$ |
191 |
|
|
$ |
262 |
|
|
$ |
320 |
|
Adjusted gross margin |
|
|
33 |
% |
|
|
21 |
% |
|
|
28 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
30 |
% |
|
|
32 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
51 |
|
|
53 |
|
|
52 |
|
|
53 |
|
|
56 |
|
|
57 |
|
|
49 |
|
|
54 |
|
Employees - support |
|
8 |
|
|
8 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
10 |
|
|
10 |
|
Employees - infrastructure |
|
13 |
|
|
12 |
|
|
12 |
|
|
14 |
|
|
15 |
|
|
16 |
|
|
16 |
|
|
18 |
|
Employees - engineering |
|
26 |
|
|
27 |
|
|
27 |
|
|
32 |
|
|
31 |
|
|
33 |
|
|
35 |
|
|
37 |
|
Employees - administration |
|
15 |
|
|
14 |
|
|
15 |
|
|
18 |
|
|
16 |
|
|
19 |
|
|
20 |
|
|
22 |
|
(1) We define a billable customer of IDI 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 IDI
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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