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, 2022.
“2022 was another record year for red violet. The target markets
for our solutions continue to exhibit solid fundamentals and
increasing opportunity, notwithstanding the uncertain economic
environment,” stated Derek Dubner, red violet’s CEO. “We remain
intently focused on utilizing our healthy cash flow generation to
strategically invest in our deep product roadmap and to further
expand the capabilities and use cases of our industry-leading,
cloud-native technology platform and customer-centric identity
intelligence solutions.”
Fourth Quarter Financial Results
For the three months ended December 31, 2022 as compared to the
three months ended December 31, 2021:
- Total revenue increased 16% to $13.1
million. Platform revenue increased 19% to $12.9 million. Services
revenue decreased 54% to $0.2 million.
- Gross profit increased 19% to $8.3
million. Gross margin increased to 63% from 62%.
- Adjusted gross profit increased 20% to
$10.0 million. Adjusted gross margin increased to 77% from
74%.
- Net loss narrowed 13% to $1.5 million,
which resulted in a loss of $0.11 per basic and diluted share.
- Adjusted EBITDA increased 16% to $1.5
million.
- Cash from operating activities
increased 123% to $4.4 million.
- Cash and cash equivalents were $31.8
million as of December 31, 2022.
Full Year Financial Results
For the year ended December 31, 2022 as compared to the year
ended December 31, 2021:
- Total revenue increased 21% to $53.3
million. Platform revenue increased 22% to $52.0 million. Services
revenue decreased 16% to $1.3 million.
- Gross profit increased 25% to $34.7
million. Gross margin increased to 65% from 63%.
- Adjusted gross profit increased 25% to
$41.1 million. Adjusted gross margin increased to 77% from
75%.
- Net income was $0.6 million, which
resulted in $0.04 per basic and diluted share, compared to net
income of $0.7 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 increased 18% to $12.9
million.
- Cash from operating activities
increased 39% to $12.5 million.
Fourth Quarter and Recent Business
Highlights
- Added 148 customers to IDI™ during the
fourth quarter, ending the year with 7,021 customers.
- Added 6,909 users to FOREWARN® during
the fourth quarter, ending the year with 116,960 users. Over 235
REALTOR® Associations are now contracted to use FOREWARN.
- Strong growth in the onboarding of
higher-tier customers, with 67 customers contributing over $100,000
of revenue in 2022 compared to 47 customers in 2021.
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 and full year 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.
Company Contact:Camilo RamirezRed Violet,
Inc.561-757-4500ir@redviolet.com
Investor Relations Contacts:Steven
Hooser/Phillip KupperThree Part
Advisors214-872-2710ir@redviolet.com
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,
adjusted gross margin and free cash flow ("FCF"). 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 (benefit) 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. We define FCF as
net cash provided by operating activities reduced by purchase of
property and equipment and capitalized costs included in intangible
assets.
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 will be
able to utilize our healthy cash flow generation to strategically
invest in our deep product roadmap and to further expand the
capabilities and use cases for our industry-leading, cloud-native
technology platform and customer-centric identity intelligence
solutions. 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, including the Form 10-K for year ended December
31, 2022 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, 2022 |
|
|
December 31, 2021 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
31,810 |
|
|
$ |
34,258 |
|
Accounts receivable, net of
allowance for doubtful accounts of $60 and $28 as of December 31,
2022 and 2021, respectively |
|
|
5,535 |
|
|
|
3,736 |
|
Prepaid expenses and other
current assets |
|
|
771 |
|
|
|
599 |
|
Total current assets |
|
|
38,116 |
|
|
|
38,593 |
|
Property and equipment, net |
|
|
709 |
|
|
|
577 |
|
Intangible assets, net |
|
|
31,647 |
|
|
|
28,181 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
1,114 |
|
|
|
1,661 |
|
Other noncurrent assets |
|
|
601 |
|
|
|
137 |
|
Total
assets |
|
$ |
77,414 |
|
|
$ |
74,376 |
|
LIABILITIES AND
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,229 |
|
|
$ |
1,605 |
|
Accrued expenses and other
current liabilities |
|
|
1,845 |
|
|
|
395 |
|
Current portion of operating
lease liabilities |
|
|
692 |
|
|
|
617 |
|
Deferred revenue |
|
|
670 |
|
|
|
841 |
|
Total current liabilities |
|
|
5,436 |
|
|
|
3,458 |
|
Noncurrent operating lease
liabilities |
|
|
598 |
|
|
|
1,291 |
|
Deferred tax liabilities |
|
|
287 |
|
|
|
198 |
|
Total
liabilities |
|
|
6,321 |
|
|
|
4,947 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par value,
10,000,000 shares authorized, and 0 shares issued and outstanding,
as of December 31, 2022 and 2021 |
|
|
- |
|
|
|
- |
|
Common stock—$0.001 par value,
200,000,000 shares authorized, 13,956,404 and 13,488,540 shares
issued and outstanding, as of December 31, 2022 and 2021 |
|
|
14 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
92,481 |
|
|
|
91,434 |
|
Accumulated deficit |
|
|
(21,402 |
) |
|
|
(22,018 |
) |
Total shareholders'
equity |
|
|
71,093 |
|
|
|
69,429 |
|
Total liabilities and
shareholders' equity |
|
$ |
77,414 |
|
|
$ |
74,376 |
|
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share
data)
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
53,318 |
|
|
$ |
44,022 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
12,211 |
|
|
|
11,195 |
|
Sales and marketing expenses |
|
|
10,834 |
|
|
|
8,932 |
|
General and administrative
expenses |
|
|
23,237 |
|
|
|
19,811 |
|
Depreciation and
amortization |
|
|
6,675 |
|
|
|
5,399 |
|
Total costs and
expenses |
|
|
52,957 |
|
|
|
45,337 |
|
Income (loss) from
operations |
|
|
361 |
|
|
|
(1,315 |
) |
Interest income (expense),
net |
|
|
351 |
|
|
|
(7 |
) |
Gain on extinguishment of
debt |
|
|
- |
|
|
|
2,175 |
|
Income before income
taxes |
|
|
712 |
|
|
|
853 |
|
Income tax expense |
|
|
96 |
|
|
|
198 |
|
Net income |
|
$ |
616 |
|
|
$ |
655 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
Diluted |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
Weighted average number
of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
13,759,296 |
|
|
|
12,597,316 |
|
Diluted |
|
|
14,107,144 |
|
|
|
13,403,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation
expense in each category: |
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
$ |
290 |
|
|
$ |
562 |
|
General and administrative
expenses |
|
|
5,215 |
|
|
|
6,053 |
|
Total |
|
$ |
5,505 |
|
|
$ |
6,615 |
|
|
RED VIOLET,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in thousands)
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
616 |
|
|
$ |
655 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
6,675 |
|
|
|
5,399 |
|
Share-based compensation
expense |
|
|
5,505 |
|
|
|
6,615 |
|
Write-off of long-lived
assets |
|
|
177 |
|
|
|
32 |
|
Provision for bad debts |
|
|
174 |
|
|
|
95 |
|
Noncash lease expenses |
|
|
547 |
|
|
|
500 |
|
Interest expense |
|
|
- |
|
|
|
11 |
|
Deferred income tax expense |
|
|
89 |
|
|
|
198 |
|
Gain on extinguishment of
debt |
|
|
- |
|
|
|
(2,175 |
) |
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,973 |
) |
|
|
(630 |
) |
Prepaid expenses and other
current assets |
|
|
(172 |
) |
|
|
(18 |
) |
Other noncurrent assets |
|
|
(464 |
) |
|
|
2 |
|
Accounts payable |
|
|
624 |
|
|
|
(470 |
) |
Accrued expenses and other
current liabilities |
|
|
1,450 |
|
|
|
(1,051 |
) |
Deferred revenue |
|
|
(171 |
) |
|
|
337 |
|
Operating lease liabilities |
|
|
(618 |
) |
|
|
(552 |
) |
Net cash provided by operating
activities |
|
|
12,459 |
|
|
|
8,948 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(373 |
) |
|
|
(280 |
) |
Capitalized costs included in
intangible assets |
|
|
(8,456 |
) |
|
|
(4,964 |
) |
Net cash used in investing
activities |
|
|
(8,829 |
) |
|
|
(5,244 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from issuance of shares,
net of issuance costs |
|
|
- |
|
|
|
20,924 |
|
Taxes paid related to net share
settlement of vesting of restricted stock units |
|
|
(5,200 |
) |
|
|
(3,327 |
) |
Repurchases of common stock |
|
|
(878 |
) |
|
|
- |
|
Net cash (used in) provided by
financing activities |
|
|
(6,078 |
) |
|
|
17,597 |
|
Net (decrease) increase
in cash and cash equivalents |
|
$ |
(2,448 |
) |
|
$ |
21,301 |
|
Cash and cash equivalents at
beginning of period |
|
|
34,258 |
|
|
|
12,957 |
|
Cash and cash equivalents
at end of period |
|
$ |
31,810 |
|
|
$ |
34,258 |
|
SUPPLEMENTAL DISCLOSURE
INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
39 |
|
|
$ |
- |
|
Share-based compensation
capitalized in intangible assets |
|
$ |
1,621 |
|
|
$ |
1,217 |
|
Retirement of treasury stock |
|
$ |
6,078 |
|
|
$ |
3,327 |
|
|
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,
adjusted gross margin and FCF. 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 (benefit) 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.
We define FCF as net cash provided by operating activities reduced
by purchase of property and equipment and capitalized costs
included in intangible assets.
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net (loss) income |
|
$ |
(1,544 |
) |
|
|
$ |
(1,784 |
) |
|
$ |
616 |
|
|
$ |
655 |
|
Interest (income) expense,
net |
|
|
(225 |
) |
|
|
|
(1 |
) |
|
|
(351 |
) |
|
|
7 |
|
Income tax (benefit) expense |
|
|
(148 |
) |
|
|
|
198 |
|
|
|
96 |
|
|
|
198 |
|
Depreciation and
amortization |
|
|
1,815 |
|
|
|
|
1,466 |
|
|
|
6,675 |
|
|
|
5,399 |
|
Share-based compensation
expense |
|
|
1,439 |
|
|
|
|
1,418 |
|
|
|
5,505 |
|
|
|
6,615 |
|
Gain on extinguishment of
debt |
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
|
(2,175 |
) |
Litigation costs |
|
|
4 |
|
|
|
|
- |
|
|
|
132 |
|
|
|
126 |
|
Write-off of long-lived assets
and others |
|
|
171 |
|
|
|
|
9 |
|
|
|
178 |
|
|
|
104 |
|
Adjusted
EBITDA |
|
$ |
1,512 |
|
|
|
$ |
1,306 |
|
|
$ |
12,851 |
|
|
$ |
10,929 |
|
Revenue |
|
$ |
13,069 |
|
|
|
$ |
11,258 |
|
|
$ |
53,318 |
|
|
$ |
44,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
margin |
|
|
(12 |
%) |
|
|
|
(16 |
%) |
|
|
1 |
% |
|
|
1 |
% |
Adjusted EBITDA
margin |
|
|
12 |
% |
|
|
|
12 |
% |
|
|
24 |
% |
|
|
25 |
% |
The following is a reconciliation of gross profit, the most
directly comparable US GAAP financial measure, to adjusted gross
profit:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
13,069 |
|
|
$ |
11,258 |
|
|
$ |
53,318 |
|
|
$ |
44,022 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
(3,054 |
) |
|
|
(2,927 |
) |
|
|
(12,211 |
) |
|
|
(11,195 |
) |
Depreciation and amortization
of intangible assets |
|
|
(1,758 |
) |
|
|
(1,407 |
) |
|
|
(6,440 |
) |
|
|
(5,170 |
) |
Gross
profit |
|
|
8,257 |
|
|
|
6,924 |
|
|
|
34,667 |
|
|
|
27,657 |
|
Depreciation and amortization
of intangible assets |
|
|
1,758 |
|
|
|
1,407 |
|
|
|
6,440 |
|
|
|
5,170 |
|
Adjusted gross
profit |
|
$ |
10,015 |
|
|
$ |
8,331 |
|
|
$ |
41,107 |
|
|
$ |
32,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
63 |
% |
|
|
62 |
% |
|
|
65 |
% |
|
|
63 |
% |
Adjusted gross
margin |
|
|
77 |
% |
|
|
74 |
% |
|
|
77 |
% |
|
|
75 |
% |
The following is a reconciliation of net cash provided by
operating activities, the most directly comparable US GAAP measure,
to FCF:
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
(In
thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net cash provided by operating activities |
|
$ |
4,359 |
|
|
$ |
1,951 |
|
|
$ |
12,459 |
|
|
$ |
8,948 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(102 |
) |
|
|
(57 |
) |
|
|
(373 |
) |
|
|
(280 |
) |
Capitalized costs included in
intangible assets |
|
|
(2,317 |
) |
|
|
(1,415 |
) |
|
|
(8,456 |
) |
|
|
(4,964 |
) |
Free cash
flow |
|
$ |
1,940 |
|
|
$ |
479 |
|
|
$ |
3,630 |
|
|
$ |
3,704 |
|
|
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, adjusted gross margin and FCF 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, adjusted gross margin and FCF 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. We believe FCF is an important
liquidity measure of the cash that is available, after capital
expenditures, for operational expenses and investment in our
business. FCF is a measure used by management to understand and
evaluate the business’s operating performance and trends over time.
FCF is calculated by using net cash provided by operating
activities, less purchase of property and equipment and capitalized
costs included in intangible assets.
Adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit,
adjusted gross margin and FCF 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 US
GAAP. In addition, FCF is not intended to represent our residual
cash flow available for discretionary expenses and is not
necessarily a measure of our ability to fund our cash needs. The
way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted
gross profit, adjusted gross margin and FCF 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) |
|
Q1'21 |
|
|
Q2'21 |
|
|
Q3'21 |
|
|
Q4'21 |
|
|
Q1'22 |
|
|
Q2'22 |
|
|
Q3'22 |
|
|
Q4'22 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI - billable customers(1) |
|
|
5,902 |
|
|
|
6,141 |
|
|
|
6,314 |
|
|
|
6,548 |
|
|
|
6,592 |
|
|
|
6,817 |
|
|
|
6,873 |
|
|
|
7,021 |
|
FOREWARN - users(2) |
|
|
58,831 |
|
|
|
67,578 |
|
|
|
74,377 |
|
|
|
82,419 |
|
|
|
91,490 |
|
|
|
101,261 |
|
|
|
110,051 |
|
|
|
116,960 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
80 |
% |
|
|
81 |
% |
|
|
80 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
68 |
% |
|
|
77 |
% |
Revenue attrition %(4) |
|
|
7 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
3 |
% |
|
|
5 |
% |
|
|
6 |
% |
|
|
5 |
% |
Revenue from new customers(5) |
|
$ |
967 |
|
|
$ |
929 |
|
|
$ |
876 |
|
|
$ |
920 |
|
|
$ |
1,014 |
|
|
$ |
805 |
|
|
$ |
2,016 |
|
|
$ |
1,216 |
|
Base revenue from existing customers(6) |
|
$ |
7,351 |
|
|
$ |
8,354 |
|
|
$ |
9,187 |
|
|
$ |
9,114 |
|
|
$ |
9,721 |
|
|
$ |
10,164 |
|
|
$ |
10,839 |
|
|
$ |
10,574 |
|
Growth revenue from existing customers(7) |
|
$ |
1,899 |
|
|
$ |
1,596 |
|
|
$ |
1,605 |
|
|
$ |
1,224 |
|
|
$ |
1,994 |
|
|
$ |
1,525 |
|
|
$ |
2,171 |
|
|
$ |
1,279 |
|
Platform financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Platform revenue(8) |
|
$ |
9,813 |
|
|
$ |
10,588 |
|
|
$ |
11,296 |
|
|
$ |
10,787 |
|
|
$ |
12,217 |
|
|
$ |
12,185 |
|
|
$ |
14,763 |
|
|
$ |
12,854 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
2,488 |
|
|
$ |
2,529 |
|
|
$ |
2,525 |
|
|
$ |
2,606 |
|
|
$ |
2,822 |
|
|
$ |
2,709 |
|
|
$ |
2,895 |
|
|
$ |
2,907 |
|
Adjusted gross margin |
|
|
75 |
% |
|
|
76 |
% |
|
|
78 |
% |
|
|
76 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
80 |
% |
|
|
77 |
% |
Services financial
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services revenue(9) |
|
$ |
404 |
|
|
$ |
291 |
|
|
$ |
372 |
|
|
$ |
471 |
|
|
$ |
512 |
|
|
$ |
309 |
|
|
$ |
263 |
|
|
$ |
215 |
|
Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
273 |
|
|
$ |
191 |
|
|
$ |
262 |
|
|
$ |
320 |
|
|
$ |
348 |
|
|
$ |
211 |
|
|
$ |
172 |
|
|
$ |
147 |
|
Adjusted gross margin |
|
|
32 |
% |
|
|
34 |
% |
|
|
30 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
35 |
% |
|
|
32 |
% |
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
56 |
|
|
57 |
|
|
49 |
|
|
54 |
|
|
59 |
|
|
57 |
|
|
64 |
|
|
68 |
|
Employees - support |
|
9 |
|
|
9 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
9 |
|
|
10 |
|
|
10 |
|
Employees - infrastructure |
|
15 |
|
|
16 |
|
|
16 |
|
|
18 |
|
|
23 |
|
|
25 |
|
|
25 |
|
|
28 |
|
Employees - engineering |
|
31 |
|
|
33 |
|
|
35 |
|
|
37 |
|
|
50 |
|
|
52 |
|
|
52 |
|
|
54 |
|
Employees - administration |
|
16 |
|
|
19 |
|
|
20 |
|
|
22 |
|
|
26 |
|
|
27 |
|
|
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
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.
Beginning Q4’22, our revenue attrition calculation excludes
Services revenue.
(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.
Red Violet (NASDAQ:RDVT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Red Violet (NASDAQ:RDVT)
Historical Stock Chart
From Jul 2023 to Jul 2024