Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended September 30, 2022.
“We had a strong quarter, setting records for nearly every key
financial metric,” stated Derek Dubner, red violet’s CEO. “Revenue
increased 29% to a record $15.0 million, net income increased 80%
to a record $2.3 million, earnings increased 78% to a record $0.16
per diluted share and adjusted EBITDA increased 43% to a record
$5.2 million. Despite the challenging economic environment, we
continue to see strong demand for our innovative identity solutions
and pipeline expansion from larger enterprise and public sector
prospects. As we continue to add talent to our sales,
product and technology teams, we are focused on providing
best-in-class, customer-centric solutions and driving strong
revenue growth.”
Third Quarter Financial Results
For the three months ended September 30, 2022 as compared to the
three months ended September 30, 2021:
- Total revenue increased 29% to $15.0
million. Platform revenue increased 31% to $14.8 million. Services
revenue decreased 29% to $0.2 million.
- Gross profit increased 36% to $10.3
million. Gross margin increased to 69% from 65%.
- Adjusted gross profit increased 35% to
$12.0 million. Adjusted gross margin increased to 80% from
76%.
- Net income increased 80% to $2.3
million, which resulted in $0.16 per basic and diluted share.
- Adjusted EBITDA increased 43% to $5.2
million.
- Cash from operating activities
decreased 9% to $3.1 million.
- Cash and cash equivalents were $31.3
million as of September 30, 2022.
Third Quarter and Recent Business
Highlights
- Added 56 customers to IDI™ during the
third quarter, ending the quarter with 6,873 customers.
- Added 8,790 users to FOREWARN® during
the third quarter, ending the quarter with 110,051 users. Over 225
REALTOR® Associations are now contracted to use FOREWARN.
- Continue to enhance our go-to-market
capabilities with the expansion of our sales team, including key
new hires focused on several strategic areas within fraud and
identity where we are seeing strong traction.
- To date, we have purchased a total of
50,000 shares of the Company’s common stock at an average price of
$17.52 per share pursuant to the Company’s Stock Repurchase Program
authorized by the board of directors on May 4, 2022.
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, 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.
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. Please click here
to pre-register for the conference call and obtain your dial in
number and passcode. 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 can
continue providing best-in-class, customer-centric solutions and
driving strong revenue growth. 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)
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
31,273 |
|
|
$ |
34,258 |
|
Accounts receivable, net of
allowance for doubtful accounts of $39 and $28 as of September
30, 2022 and December 31, 2021, respectively |
|
|
6,473 |
|
|
|
3,736 |
|
Prepaid expenses and other
current assets |
|
|
849 |
|
|
|
599 |
|
Total current assets |
|
|
38,595 |
|
|
|
38,593 |
|
Property and equipment, net |
|
|
664 |
|
|
|
577 |
|
Intangible assets, net |
|
|
30,831 |
|
|
|
28,181 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
1,255 |
|
|
|
1,661 |
|
Other noncurrent assets |
|
|
137 |
|
|
|
137 |
|
Total
assets |
|
$ |
76,709 |
|
|
$ |
74,376 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,596 |
|
|
$ |
1,605 |
|
Accrued expenses and other
current liabilities |
|
|
562 |
|
|
|
395 |
|
Current portion of operating
lease liabilities |
|
|
674 |
|
|
|
617 |
|
Deferred revenue |
|
|
539 |
|
|
|
841 |
|
Total current liabilities |
|
|
3,371 |
|
|
|
3,458 |
|
Noncurrent operating lease
liabilities |
|
|
778 |
|
|
|
1,291 |
|
Deferred tax liabilities |
|
|
405 |
|
|
|
198 |
|
Total
liabilities |
|
|
4,554 |
|
|
|
4,947 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par value,
10,000,000 shares authorized, and 0 shares issued and
outstanding, as of September 30, 2022 and December 31, 2021 |
|
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 13,874,406 and 13,488,540
shares issued, 13,873,406 and 13,488,540 shares outstanding, as
of September 30, 2022 and December 31, 2021 |
|
|
14 |
|
|
|
13 |
|
Treasury stock, at cost, 1,000
and 0 shares as of September 30, 2022 and December 31,
2021 |
|
|
(18 |
) |
|
|
- |
|
Additional paid-in capital |
|
|
92,017 |
|
|
|
91,434 |
|
Accumulated deficit |
|
|
(19,858 |
) |
|
|
(22,018 |
) |
Total shareholders'
equity |
|
|
72,155 |
|
|
|
69,429 |
|
Total liabilities and
shareholders' equity |
|
$ |
76,709 |
|
|
$ |
74,376 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share
data)(unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
15,026 |
|
|
$ |
11,668 |
|
|
$ |
40,249 |
|
|
$ |
32,764 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
3,067 |
|
|
|
2,787 |
|
|
|
9,157 |
|
|
|
8,268 |
|
Sales and marketing expenses |
|
|
2,623 |
|
|
|
2,154 |
|
|
|
7,836 |
|
|
|
6,724 |
|
General and administrative
expenses |
|
|
5,465 |
|
|
|
4,127 |
|
|
|
16,118 |
|
|
|
13,567 |
|
Depreciation and
amortization |
|
|
1,713 |
|
|
|
1,345 |
|
|
|
4,860 |
|
|
|
3,933 |
|
Total costs and
expenses |
|
|
12,868 |
|
|
|
10,413 |
|
|
|
37,971 |
|
|
|
32,492 |
|
Income from
operations |
|
|
2,158 |
|
|
|
1,255 |
|
|
|
2,278 |
|
|
|
272 |
|
Interest income (expense),
net |
|
|
125 |
|
|
|
1 |
|
|
|
126 |
|
|
|
(8 |
) |
Gain on extinguishment of
debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,175 |
|
Income before income
taxes |
|
|
2,283 |
|
|
|
1,256 |
|
|
|
2,404 |
|
|
|
2,439 |
|
Income tax expense |
|
|
25 |
|
|
|
- |
|
|
|
244 |
|
|
|
- |
|
Net income |
|
$ |
2,258 |
|
|
$ |
1,256 |
|
|
$ |
2,160 |
|
|
$ |
2,439 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.10 |
|
|
$ |
0.16 |
|
|
$ |
0.20 |
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
$ |
0.19 |
|
Weighted average number
of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,748,587 |
|
|
|
12,741,723 |
|
|
|
13,690,309 |
|
|
|
12,408,152 |
|
Diluted |
|
|
13,764,262 |
|
|
|
13,645,208 |
|
|
|
13,872,596 |
|
|
|
13,140,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
92 |
|
|
$ |
103 |
|
|
$ |
247 |
|
|
$ |
417 |
|
General and administrative
expenses |
|
|
1,181 |
|
|
|
883 |
|
|
|
3,819 |
|
|
|
4,780 |
|
Total |
|
$ |
1,273 |
|
|
$ |
986 |
|
|
$ |
4,066 |
|
|
$ |
5,197 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(unaudited)
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,160 |
|
|
$ |
2,439 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
4,860 |
|
|
|
3,933 |
|
Share-based compensation
expense |
|
|
4,066 |
|
|
|
5,197 |
|
Write-off of long-lived
assets |
|
|
6 |
|
|
|
24 |
|
Provision for bad debts |
|
|
96 |
|
|
|
67 |
|
Noncash lease expenses |
|
|
406 |
|
|
|
371 |
|
Interest expense |
|
|
- |
|
|
|
11 |
|
Deferred income tax expense |
|
|
207 |
|
|
|
- |
|
Gain on extinguishment of
debt |
|
|
- |
|
|
|
(2,175 |
) |
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,833 |
) |
|
|
(906 |
) |
Prepaid expenses and other
current assets |
|
|
(250 |
) |
|
|
(69 |
) |
Other noncurrent assets |
|
|
- |
|
|
|
2 |
|
Accounts payable |
|
|
(9 |
) |
|
|
(709 |
) |
Accrued expenses and other
current liabilities |
|
|
149 |
|
|
|
(700 |
) |
Deferred revenue |
|
|
(302 |
) |
|
|
(80 |
) |
Operating lease liabilities |
|
|
(456 |
) |
|
|
(408 |
) |
Net cash provided by operating
activities |
|
|
8,100 |
|
|
|
6,997 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(271 |
) |
|
|
(223 |
) |
Capitalized costs included in
intangible assets |
|
|
(6,139 |
) |
|
|
(3,549 |
) |
Net cash used in investing
activities |
|
|
(6,410 |
) |
|
|
(3,772 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Taxes paid related to net share
settlement of vesting of restricted stock units |
|
|
(4,310 |
) |
|
|
(2,785 |
) |
Repurchases of common stock |
|
|
(365 |
) |
|
|
- |
|
Net cash used in financing
activities |
|
|
(4,675 |
) |
|
|
(2,785 |
) |
Net (decrease) increase
in cash and cash equivalents |
|
$ |
(2,985 |
) |
|
$ |
440 |
|
Cash and cash equivalents at
beginning of period |
|
|
34,258 |
|
|
|
12,957 |
|
Cash and cash equivalents
at end of period |
|
$ |
31,273 |
|
|
$ |
13,397 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
37 |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
|
$ |
1,193 |
|
|
$ |
1,023 |
|
Retirement of treasury stock |
|
$ |
4,675 |
|
|
$ |
2,785 |
|
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, the most directly comparable financial measure based
on 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 September 30, |
|
|
Nine Months Ended September 30, |
|
(In
thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net income |
|
$ |
2,258 |
|
|
$ |
1,256 |
|
|
$ |
2,160 |
|
|
$ |
2,439 |
|
Interest (income) expense,
net |
|
|
(125 |
) |
|
|
(1 |
) |
|
|
(126 |
) |
|
|
8 |
|
Income tax expense |
|
|
25 |
|
|
|
- |
|
|
|
244 |
|
|
|
- |
|
Depreciation and
amortization |
|
|
1,713 |
|
|
|
1,345 |
|
|
|
4,860 |
|
|
|
3,933 |
|
Share-based compensation
expense |
|
|
1,273 |
|
|
|
986 |
|
|
|
4,066 |
|
|
|
5,197 |
|
Gain on extinguishment of
debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,175 |
) |
Litigation costs |
|
|
37 |
|
|
|
- |
|
|
|
128 |
|
|
|
126 |
|
Write-off of long-lived assets
and others |
|
|
4 |
|
|
|
34 |
|
|
|
7 |
|
|
|
95 |
|
Adjusted
EBITDA |
|
$ |
5,185 |
|
|
$ |
3,620 |
|
|
$ |
11,339 |
|
|
$ |
9,623 |
|
Revenue |
|
$ |
15,026 |
|
|
$ |
11,668 |
|
|
$ |
40,249 |
|
|
$ |
32,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
margin |
|
|
15 |
% |
|
|
11 |
% |
|
|
5 |
% |
|
|
7 |
% |
Adjusted EBITDA
margin |
|
|
35 |
% |
|
|
31 |
% |
|
|
28 |
% |
|
|
29 |
% |
The following is a reconciliation of gross profit, the most
directly comparable GAAP financial measure, to adjusted gross
profit:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(In
thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
15,026 |
|
|
$ |
11,668 |
|
|
$ |
40,249 |
|
|
$ |
32,764 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
(3,067 |
) |
|
|
(2,787 |
) |
|
|
(9,157 |
) |
|
|
(8,268 |
) |
Depreciation and amortization
of intangible assets |
|
|
(1,659 |
) |
|
|
(1,288 |
) |
|
|
(4,682 |
) |
|
|
(3,763 |
) |
Gross
profit |
|
|
10,300 |
|
|
|
7,593 |
|
|
|
26,410 |
|
|
|
20,733 |
|
Depreciation and amortization
of intangible assets |
|
|
1,659 |
|
|
|
1,288 |
|
|
|
4,682 |
|
|
|
3,763 |
|
Adjusted gross
profit |
|
$ |
11,959 |
|
|
$ |
8,881 |
|
|
$ |
31,092 |
|
|
$ |
24,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
69 |
% |
|
|
65 |
% |
|
|
66 |
% |
|
|
63 |
% |
Adjusted gross
margin |
|
|
80 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
75 |
% |
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) |
|
Q4'20 |
|
|
Q1'21 |
|
|
Q2'21 |
|
|
Q3'21 |
|
|
Q4'21 |
|
|
Q1'22 |
|
|
Q2'22 |
|
|
Q3'22 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI - billable customers(1) |
|
|
5,726 |
|
|
|
5,902 |
|
|
|
6,141 |
|
|
|
6,314 |
|
|
|
6,548 |
|
|
|
6,592 |
|
|
|
6,817 |
|
|
|
6,873 |
|
FOREWARN - users(2) |
|
|
48,377 |
|
|
|
58,831 |
|
|
|
67,578 |
|
|
|
74,377 |
|
|
|
82,419 |
|
|
|
91,490 |
|
|
|
101,261 |
|
|
|
110,051 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
77 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
68 |
% |
Revenue attrition %(4) |
|
|
11 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
5 |
% |
|
|
6 |
% |
Revenue from new customers(5) |
|
$ |
877 |
|
|
$ |
967 |
|
|
$ |
929 |
|
|
$ |
876 |
|
|
$ |
920 |
|
|
$ |
1,014 |
|
|
$ |
805 |
|
|
$ |
2,016 |
|
Base revenue from existing customers(6) |
|
$ |
6,678 |
|
|
$ |
7,351 |
|
|
$ |
8,354 |
|
|
$ |
9,187 |
|
|
$ |
9,114 |
|
|
$ |
9,721 |
|
|
$ |
10,164 |
|
|
$ |
10,839 |
|
Growth revenue from existing customers(7) |
|
$ |
1,408 |
|
|
$ |
1,899 |
|
|
$ |
1,596 |
|
|
$ |
1,605 |
|
|
$ |
1,224 |
|
|
$ |
1,994 |
|
|
$ |
1,525 |
|
|
$ |
2,171 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
8,603 |
|
|
$ |
9,813 |
|
|
$ |
10,588 |
|
|
$ |
11,296 |
|
|
$ |
10,787 |
|
|
$ |
12,217 |
|
|
$ |
12,185 |
|
|
$ |
14,763 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
2,448 |
|
|
$ |
2,488 |
|
|
$ |
2,529 |
|
|
$ |
2,525 |
|
|
$ |
2,606 |
|
|
$ |
2,822 |
|
|
$ |
2,709 |
|
|
$ |
2,895 |
|
Adjusted gross margin |
|
|
72 |
% |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
80 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
360 |
|
|
$ |
404 |
|
|
$ |
291 |
|
|
$ |
372 |
|
|
$ |
471 |
|
|
$ |
512 |
|
|
$ |
309 |
|
|
$ |
263 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
246 |
|
|
$ |
273 |
|
|
$ |
191 |
|
|
$ |
262 |
|
|
$ |
320 |
|
|
$ |
348 |
|
|
$ |
211 |
|
|
$ |
172 |
|
Adjusted gross margin |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
35 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
53 |
|
|
56 |
|
|
57 |
|
|
49 |
|
|
54 |
|
|
59 |
|
|
57 |
|
|
64 |
|
Employees - support |
|
9 |
|
|
9 |
|
|
9 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
9 |
|
|
10 |
|
Employees - infrastructure |
|
14 |
|
|
15 |
|
|
16 |
|
|
16 |
|
|
18 |
|
|
23 |
|
|
25 |
|
|
25 |
|
Employees - engineering |
|
32 |
|
|
31 |
|
|
33 |
|
|
35 |
|
|
37 |
|
|
50 |
|
|
52 |
|
|
52 |
|
Employees - administration |
|
18 |
|
|
16 |
|
|
19 |
|
|
20 |
|
|
22 |
|
|
26 |
|
|
27 |
|
|
26 |
|
(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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