Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended June 30, 2022.
“We delivered a solid quarter with revenue of $12.5 million, net
loss of $0.2 million and adjusted EBITDA of $2.9 million,
notwithstanding the uncertain economic environment,” stated Derek
Dubner, red violet’s CEO. “We continued to see strong growth and
increasing demand for our identity and fraud solutions across
diverse verticals, while experiencing headwinds in our real estate
marketing segment due to the cooling housing market. Our business
is extremely healthy and well positioned for continued revenue
growth and increasing profitability in the back half of the year
and beyond, given our innovative solutions, robust product and
sales pipelines, strong balance sheet, and healthy free cash
flow.”
Second Quarter Financial Results
For the three months ended June 30, 2022 as compared to the
three months ended June 30, 2021:
- Total revenue increased 15% to $12.5
million. Platform revenue increased 15% to $12.2 million. Services
revenue increased 6% to $0.3 million.
- Gross profit increased 16% to $8.0
million. Gross margin increased to 64% from 63%.
- Adjusted gross profit increased 17% to
$9.6 million. Adjusted gross margin increased to 77% from 75%.
- Net loss was $0.2 million compared to a
net income of $1.8 million (inclusive of a one-time gain of $2.2
million on the extinguishment of debt from the forgiveness of the
Cares Act Loan).
- Adjusted EBITDA decreased 6% to $2.9
million.
- Cash from operating activities
increased 10% to $2.5 million.
- Cash and cash equivalents were $32.3
million as of June 30, 2022.
Second Quarter and Recent Business
Highlights
- Added 225 customers to IDI™ during the
second quarter, ending the quarter with 6,817 customers.
- Surpassed 100,000 users on FOREWARN®
during the second quarter, ending the quarter with 101,261 users.
Over 205 REALTOR® Associations are now contracted to use
FOREWARN.
- Released idiTRACE™, a premier SSN Trace
solution for background screening organizations.
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 expense (income), 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.
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 (866) 374-5140 for domestic callers or (404)
400-0571 for international callers, using the passcode 87751570#.
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, 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 we are well
positioned for continued revenue growth and increasing
profitability in the back half of the year and beyond, given our
innovative solutions, robust product and sales pipelines, strong
balance sheet, and healthy free cash flow. 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, 2021 filed on March 9, 2022, 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, 2022 |
|
|
December 31, 2021 |
|
ASSETS: |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
32,328 |
|
|
$ |
34,258 |
|
Accounts receivable, net of
allowance for doubtful accounts of $35 and $28 as of June 30, 2022
and December 31, 2021, respectively |
|
4,157 |
|
|
|
3,736 |
|
Prepaid expenses and other
current assets |
|
953 |
|
|
|
599 |
|
Total current assets |
|
37,438 |
|
|
|
38,593 |
|
Property and equipment,
net |
|
671 |
|
|
|
577 |
|
Intangible assets, net |
|
29,774 |
|
|
|
28,181 |
|
Goodwill |
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
1,394 |
|
|
|
1,661 |
|
Other noncurrent assets |
|
137 |
|
|
|
137 |
|
Total
assets |
$ |
74,641 |
|
|
$ |
74,376 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
1,448 |
|
|
$ |
1,605 |
|
Accrued expenses and other
current liabilities |
|
626 |
|
|
|
395 |
|
Current portion of operating
lease liabilities |
|
655 |
|
|
|
617 |
|
Deferred revenue |
|
622 |
|
|
|
841 |
|
Total current liabilities |
|
3,351 |
|
|
|
3,458 |
|
Noncurrent operating lease
liabilities |
|
953 |
|
|
|
1,291 |
|
Deferred tax liabilities |
|
395 |
|
|
|
198 |
|
Total
liabilities |
|
4,699 |
|
|
|
4,947 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
Preferred stock—$0.001 par
value, 10,000,000 shares authorized, and 0 shares issued and
outstanding, as of June 30, 2022 and December 31, 2021 |
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 13,702,796 and 13,488,540
shares issued, 13,695,765 and 13,488,540 shares outstanding, as
of June 30, 2022 and December 31, 2021 |
|
14 |
|
|
|
13 |
|
Treasury stock, at cost, 7,031
and 0 shares as of June 30, 2022 and December 31, 2021 |
|
(134 |
) |
|
|
- |
|
Additional paid-in
capital |
|
92,178 |
|
|
|
91,434 |
|
Accumulated deficit |
|
(22,116 |
) |
|
|
(22,018 |
) |
Total shareholders'
equity |
|
69,942 |
|
|
|
69,429 |
|
Total liabilities and
shareholders' equity |
$ |
74,641 |
|
|
$ |
74,376 |
|
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, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
12,494 |
|
|
$ |
10,879 |
|
|
$ |
25,223 |
|
|
$ |
21,096 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
2,920 |
|
|
|
2,720 |
|
|
|
6,090 |
|
|
|
5,481 |
|
Sales and marketing
expenses |
|
|
2,822 |
|
|
|
2,349 |
|
|
|
5,213 |
|
|
|
4,570 |
|
General and administrative
expenses |
|
|
5,300 |
|
|
|
4,890 |
|
|
|
10,653 |
|
|
|
9,440 |
|
Depreciation and
amortization |
|
|
1,613 |
|
|
|
1,330 |
|
|
|
3,147 |
|
|
|
2,588 |
|
Total costs and
expenses |
|
|
12,655 |
|
|
|
11,289 |
|
|
|
25,103 |
|
|
|
22,079 |
|
(Loss) income from
operations |
|
|
(161 |
) |
|
|
(410 |
) |
|
|
120 |
|
|
|
(983 |
) |
Interest (expense) income,
net |
|
|
- |
|
|
|
(4 |
) |
|
|
1 |
|
|
|
(9 |
) |
Gain on extinguishment of
debt |
|
|
- |
|
|
|
2,175 |
|
|
|
- |
|
|
|
2,175 |
|
(Loss) income before
income taxes |
|
|
(161 |
) |
|
|
1,761 |
|
|
|
121 |
|
|
|
1,183 |
|
Income tax expense |
|
|
44 |
|
|
|
- |
|
|
|
219 |
|
|
|
- |
|
Net (loss)
income |
|
$ |
(205 |
) |
|
$ |
1,761 |
|
|
$ |
(98 |
) |
|
$ |
1,183 |
|
(Loss) earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.01 |
) |
|
$ |
0.14 |
|
|
$ |
(0.01 |
) |
|
$ |
0.10 |
|
Diluted |
|
$ |
(0.01 |
) |
|
$ |
0.13 |
|
|
$ |
(0.01 |
) |
|
$ |
0.09 |
|
Weighted average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,776,479 |
|
|
|
12,269,412 |
|
|
|
13,660,686 |
|
|
|
12,238,475 |
|
Diluted |
|
|
13,776,479 |
|
|
|
13,560,714 |
|
|
|
13,660,686 |
|
|
|
13,487,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
108 |
|
|
$ |
158 |
|
|
$ |
155 |
|
|
$ |
314 |
|
General and administrative
expenses |
|
|
1,298 |
|
|
|
2,007 |
|
|
|
2,638 |
|
|
|
3,897 |
|
Total |
|
$ |
1,406 |
|
|
$ |
2,165 |
|
|
$ |
2,793 |
|
|
$ |
4,211 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(unaudited)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(98 |
) |
|
$ |
1,183 |
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and
amortization |
|
3,147 |
|
|
|
2,588 |
|
Share-based compensation
expense |
|
2,793 |
|
|
|
4,211 |
|
Write-off of long-lived
assets |
|
3 |
|
|
|
24 |
|
Provision for bad debts |
|
61 |
|
|
|
62 |
|
Noncash lease expenses |
|
267 |
|
|
|
245 |
|
Interest expense |
|
- |
|
|
|
11 |
|
Deferred income tax
expense |
|
197 |
|
|
|
- |
|
Gain on extinguishment of
debt |
|
- |
|
|
|
(2,175 |
) |
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(482 |
) |
|
|
(247 |
) |
Prepaid expenses and other
current assets |
|
(354 |
) |
|
|
(684 |
) |
Other noncurrent assets |
|
- |
|
|
|
2 |
|
Accounts payable |
|
(157 |
) |
|
|
(657 |
) |
Accrued expenses and other
current liabilities |
|
97 |
|
|
|
(685 |
) |
Deferred revenue |
|
(219 |
) |
|
|
(77 |
) |
Operating lease
liabilities |
|
(300 |
) |
|
|
(268 |
) |
Net cash provided by operating
activities |
|
4,955 |
|
|
|
3,533 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(221 |
) |
|
|
(155 |
) |
Capitalized costs included in
intangible assets |
|
(3,893 |
) |
|
|
(2,420 |
) |
Net cash used in investing
activities |
|
(4,114 |
) |
|
|
(2,575 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
Taxes paid related to net
share settlement of vesting of restricted stock units |
|
(2,771 |
) |
|
|
- |
|
Net cash used in financing
activities |
|
(2,771 |
) |
|
|
- |
|
Net (decrease)
increase in cash and cash equivalents |
$ |
(1,930 |
) |
|
$ |
958 |
|
Cash and cash equivalents at
beginning of period |
|
34,258 |
|
|
|
12,957 |
|
Cash and cash
equivalents at end of period |
$ |
32,328 |
|
|
$ |
13,915 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
Cash paid for income
taxes |
$ |
- |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
$ |
723 |
|
|
$ |
695 |
|
Retirement of treasury
stock |
$ |
2,771 |
|
|
$ |
- |
|
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 GAAP, excluding interest expense (income), 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 June 30, |
|
|
Six Months Ended June 30, |
|
(In
thousands) |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net (loss) income |
$ |
(205 |
) |
|
$ |
1,761 |
|
|
$ |
(98 |
) |
|
$ |
1,183 |
|
Interest expense (income),
net |
|
- |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
9 |
|
Income tax expense |
|
44 |
|
|
|
- |
|
|
|
219 |
|
|
|
- |
|
Depreciation and
amortization |
|
1,613 |
|
|
|
1,330 |
|
|
|
3,147 |
|
|
|
2,588 |
|
Share-based compensation
expense |
|
1,406 |
|
|
|
2,165 |
|
|
|
2,793 |
|
|
|
4,211 |
|
Gain on extinguishment of
debt |
|
- |
|
|
|
(2,175 |
) |
|
|
- |
|
|
|
(2,175 |
) |
Litigation costs |
|
76 |
|
|
|
6 |
|
|
|
91 |
|
|
|
126 |
|
Write-off of long-lived assets
and others |
|
- |
|
|
|
41 |
|
|
|
3 |
|
|
|
61 |
|
Adjusted
EBITDA |
$ |
2,934 |
|
|
$ |
3,132 |
|
|
$ |
6,154 |
|
|
$ |
6,003 |
|
Revenue |
$ |
12,494 |
|
|
$ |
10,879 |
|
|
$ |
25,223 |
|
|
$ |
21,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
margin |
|
(2 |
%) |
|
|
16 |
% |
|
|
0 |
% |
|
|
6 |
% |
Adjusted EBITDA
margin |
|
23 |
% |
|
|
29 |
% |
|
|
24 |
% |
|
|
28 |
% |
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) |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
$ |
12,494 |
|
|
$ |
10,879 |
|
|
$ |
25,223 |
|
|
$ |
21,096 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
(2,920 |
) |
|
|
(2,720 |
) |
|
|
(6,090 |
) |
|
|
(5,481 |
) |
Depreciation and amortization
of intangible assets |
|
(1,551 |
) |
|
|
(1,272 |
) |
|
|
(3,023 |
) |
|
|
(2,475 |
) |
Gross
profit |
|
8,023 |
|
|
|
6,887 |
|
|
|
16,110 |
|
|
|
13,140 |
|
Depreciation and amortization
of intangible assets |
|
1,551 |
|
|
|
1,272 |
|
|
|
3,023 |
|
|
|
2,475 |
|
Adjusted gross
profit |
$ |
9,574 |
|
|
$ |
8,159 |
|
|
$ |
19,133 |
|
|
$ |
15,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
64 |
% |
|
|
63 |
% |
|
|
64 |
% |
|
|
62 |
% |
Adjusted gross
margin |
|
77 |
% |
|
|
75 |
% |
|
|
76 |
% |
|
|
74 |
% |
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’ 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) |
Q3'20 |
|
|
Q4'20 |
|
|
Q1'21 |
|
|
Q2'21 |
|
|
Q3'21 |
|
|
Q4'21 |
|
|
Q1'22 |
|
|
Q2'22 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI - billable customers(1) |
|
5,758 |
|
|
|
5,726 |
|
|
|
5,902 |
|
|
|
6,141 |
|
|
|
6,314 |
|
|
|
6,548 |
|
|
|
6,592 |
|
|
|
6,817 |
|
FOREWARN - users(2) |
|
44,927 |
|
|
|
48,377 |
|
|
|
58,831 |
|
|
|
67,578 |
|
|
|
74,377 |
|
|
|
82,419 |
|
|
|
91,490 |
|
|
|
101,261 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
68 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
80 |
% |
Revenue attrition %(4) |
|
10 |
% |
|
|
11 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
5 |
% |
Revenue from new customers(5) |
$ |
726 |
|
|
$ |
877 |
|
|
$ |
967 |
|
|
$ |
929 |
|
|
$ |
876 |
|
|
$ |
920 |
|
|
$ |
1,014 |
|
|
$ |
805 |
|
Base revenue from existing customers(6) |
$ |
5,797 |
|
|
$ |
6,678 |
|
|
$ |
7,351 |
|
|
$ |
8,354 |
|
|
$ |
9,187 |
|
|
$ |
9,114 |
|
|
$ |
9,721 |
|
|
$ |
10,164 |
|
Growth revenue from existing customers(7) |
$ |
2,744 |
|
|
$ |
1,408 |
|
|
$ |
1,899 |
|
|
$ |
1,596 |
|
|
$ |
1,605 |
|
|
$ |
1,224 |
|
|
$ |
1,994 |
|
|
$ |
1,525 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
$ |
8,968 |
|
|
$ |
8,603 |
|
|
$ |
9,813 |
|
|
$ |
10,588 |
|
|
$ |
11,296 |
|
|
$ |
10,787 |
|
|
$ |
12,217 |
|
|
$ |
12,185 |
|
Cost of revenue (exclusive of depreciation and amortization) |
$ |
2,489 |
|
|
$ |
2,448 |
|
|
$ |
2,488 |
|
|
$ |
2,529 |
|
|
$ |
2,525 |
|
|
$ |
2,606 |
|
|
$ |
2,822 |
|
|
$ |
2,709 |
|
Adjusted gross margin |
|
72 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
78 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
$ |
299 |
|
|
$ |
360 |
|
|
$ |
404 |
|
|
$ |
291 |
|
|
$ |
372 |
|
|
$ |
471 |
|
|
$ |
512 |
|
|
$ |
309 |
|
Cost of revenue (exclusive of depreciation and amortization) |
$ |
214 |
|
|
$ |
246 |
|
|
$ |
273 |
|
|
$ |
191 |
|
|
$ |
262 |
|
|
$ |
320 |
|
|
$ |
348 |
|
|
$ |
211 |
|
Adjusted gross margin |
|
28 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
52 |
|
|
53 |
|
|
56 |
|
|
57 |
|
|
49 |
|
|
54 |
|
|
59 |
|
|
57 |
|
Employees - support |
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
9 |
|
Employees - infrastructure |
12 |
|
|
14 |
|
|
15 |
|
|
16 |
|
|
16 |
|
|
18 |
|
|
23 |
|
|
25 |
|
Employees - engineering |
27 |
|
|
32 |
|
|
31 |
|
|
33 |
|
|
35 |
|
|
37 |
|
|
50 |
|
|
52 |
|
Employees - administration |
15 |
|
|
18 |
|
|
16 |
|
|
19 |
|
|
20 |
|
|
22 |
|
|
26 |
|
|
27 |
|
(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, and it
excludes expansion revenue. Revenue is measured once a customer has
generated revenue for six consecutive months. Revenue is considered
lost when all revenue from a customer ceases for three consecutive
months; revenue generated by a customer after the three-month loss
period is defined as reinstated revenue. 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. Prior to Q1’22, FOREWARN
revenue was excluded from our revenue attrition calculation. |
|
|
(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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