Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced financial results
for the quarter ended June 30, 2023.
“We are pleased with our second quarter results, further
highlighting our ability to drive both top-line growth and
profitability," stated Derek Dubner, red violet’s CEO. “We are
seeing continued strength in new customer onboarding, pipeline
expansion from higher-tier prospects, and robust customer
conversion at all levels. Our consistent revenue growth and
increasing profitability, which are driven by our distinct ability
to meet strong industrywide demand for innovative, accurate, and
highly-scalable identity solutions, bolster our position as we
enter the back half of the year.”
Second Quarter Financial Results
For the three months ended June 30, 2023, as compared to the
three months ended June 30, 2022:
- Total revenue increased 17% to $14.7
million.
- Gross profit increased 18% to $9.4
million. Gross margin remained consistent at 64%.
- Adjusted gross profit increased 19% to
$11.4 million. Adjusted gross margin increased to 78% from
77%.
- Net income was $1.4 million, compared
to a net loss of $0.2 million, which resulted in earnings of $0.10
per basic and diluted share. Net income margin increased to 9% from
a net loss margin of (2%).
- Adjusted EBITDA increased 58% to $4.6
million. Adjusted EBITDA margin increased to 32% from 23%.
- Net cash from operating activities
increased 40% to $3.5 million.
- Cash and cash equivalents were $31.4
million as of June 30, 2023.
Second Quarter and Recent Business
Highlights
- Added 241 customers to IDI™ during the
second quarter, ending the quarter with 7,497 customers.
- Added 15,189 users to FOREWARN® during
the second quarter, ending the quarter with 146,537 users. Over 285
REALTOR® Associations throughout the U.S. are now contracted to use
FOREWARN.
- Purchased 55,018 shares of the
Company’s common stock during the six months ended June 30, 2023,
at an average price of $17.04 per share pursuant to the Company’s
$5.0 million Stock Repurchase Program that was authorized on May 2,
2022. The Company has $3.2 million remaining under the Stock
Repurchase Program.
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 income (loss), the most
directly comparable financial measure based on US GAAP, excluding
interest income, net, income tax expense, depreciation and
amortization, share-based compensation expense, 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 use our distinct ability to meet strong industrywide demand
for innovative, accurate, and highly-scalable identity solutions to
bolster our position as we enter the back half of the year. 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, 2022 filed on March 8,
2023, 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, 2023 |
|
|
December 31, 2022 |
|
ASSETS: |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
31,368 |
|
|
$ |
31,810 |
|
Accounts
receivable, net of allowance for doubtful accounts of $86 and $60
as of June 30, 2023 and December 31, 2022, respectively |
|
|
6,556 |
|
|
|
5,535 |
|
Prepaid
expenses and other current assets |
|
|
1,325 |
|
|
|
771 |
|
Total
current assets |
|
|
39,249 |
|
|
|
38,116 |
|
Property
and equipment, net |
|
|
640 |
|
|
|
709 |
|
Intangible assets, net |
|
|
33,175 |
|
|
|
31,647 |
|
Goodwill |
|
|
5,227 |
|
|
|
5,227 |
|
Right-of-use assets |
|
|
821 |
|
|
|
1,114 |
|
Other
noncurrent assets |
|
|
765 |
|
|
|
601 |
|
Total assets |
|
$ |
79,877 |
|
|
$ |
77,414 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,694 |
|
|
$ |
2,229 |
|
Accrued
expenses and other current liabilities |
|
|
424 |
|
|
|
1,845 |
|
Current
portion of operating lease liabilities |
|
|
731 |
|
|
|
692 |
|
Deferred
revenue |
|
|
627 |
|
|
|
670 |
|
Total
current liabilities |
|
|
3,476 |
|
|
|
5,436 |
|
Noncurrent operating lease liabilities |
|
|
222 |
|
|
|
598 |
|
Deferred
tax liabilities |
|
|
411 |
|
|
|
287 |
|
Total liabilities |
|
|
4,109 |
|
|
|
6,321 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and
0 shares issued and outstanding, as of June 30, 2023 and December
31, 2022 |
|
|
- |
|
|
|
- |
|
Common
stock—$0.001 par value, 200,000,000 shares authorized, 13,911,691
and 13,956,404 shares issued, and 13,908,953 and 13,956,404 shares
outstanding, as of June 30, 2023 and December 31, 2022 |
|
|
14 |
|
|
|
14 |
|
Treasury
stock, at cost, 2,738 and 0 shares as of June 30, 2023 and December
31, 2022 |
|
|
(52 |
) |
|
|
- |
|
Additional paid-in capital |
|
|
95,104 |
|
|
|
92,481 |
|
Accumulated deficit |
|
|
(19,298 |
) |
|
|
(21,402 |
) |
Total shareholders' equity |
|
|
75,768 |
|
|
|
71,093 |
|
Total liabilities and shareholders' equity |
|
$ |
79,877 |
|
|
$ |
77,414 |
|
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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
14,680 |
|
|
$ |
12,494 |
|
|
$ |
29,306 |
|
|
$ |
25,223 |
|
Costs and
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
|
|
3,240 |
|
|
|
2,920 |
|
|
|
6,419 |
|
|
|
6,090 |
|
Sales
and marketing expenses |
|
|
3,078 |
|
|
|
2,822 |
|
|
|
6,967 |
|
|
|
5,213 |
|
General
and administrative expenses |
|
|
5,075 |
|
|
|
5,300 |
|
|
|
10,316 |
|
|
|
10,653 |
|
Depreciation and amortization |
|
|
2,054 |
|
|
|
1,613 |
|
|
|
3,970 |
|
|
|
3,147 |
|
Total costs and expenses |
|
|
13,447 |
|
|
|
12,655 |
|
|
|
27,672 |
|
|
|
25,103 |
|
Income (loss) from operations |
|
|
1,233 |
|
|
|
(161 |
) |
|
|
1,634 |
|
|
|
120 |
|
Interest
income, net |
|
|
315 |
|
|
|
- |
|
|
|
601 |
|
|
|
1 |
|
Income (loss) before income taxes |
|
|
1,548 |
|
|
|
(161 |
) |
|
|
2,235 |
|
|
|
121 |
|
Income
tax expense |
|
|
160 |
|
|
|
44 |
|
|
|
131 |
|
|
|
219 |
|
Net income (loss) |
|
$ |
1,388 |
|
|
$ |
(205 |
) |
|
$ |
2,104 |
|
|
$ |
(98 |
) |
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.10 |
|
|
$ |
(0.01 |
) |
|
$ |
0.15 |
|
|
$ |
(0.01 |
) |
Diluted |
|
$ |
0.10 |
|
|
$ |
(0.01 |
) |
|
$ |
0.15 |
|
|
$ |
(0.01 |
) |
Weighted average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,961,862 |
|
|
|
13,776,479 |
|
|
|
13,979,411 |
|
|
|
13,660,686 |
|
Diluted |
|
|
14,172,024 |
|
|
|
13,776,479 |
|
|
|
14,180,614 |
|
|
|
13,660,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Share-based compensation expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing expenses |
|
$ |
125 |
|
|
$ |
108 |
|
|
$ |
232 |
|
|
$ |
155 |
|
General and administrative expenses |
|
|
1,180 |
|
|
|
1,298 |
|
|
|
2,457 |
|
|
|
2,638 |
|
Total |
|
$ |
1,305 |
|
|
$ |
1,406 |
|
|
$ |
2,689 |
|
|
$ |
2,793 |
|
RED VIOLET,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(unaudited)
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
2,104 |
|
|
$ |
(98 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,970 |
|
|
|
3,147 |
|
Share-based compensation expense |
|
|
2,689 |
|
|
|
2,793 |
|
Write-off of long-lived assets |
|
|
3 |
|
|
|
3 |
|
Provision for bad debts |
|
|
789 |
|
|
|
61 |
|
Noncash
lease expenses |
|
|
293 |
|
|
|
267 |
|
Deferred
income tax expense |
|
|
124 |
|
|
|
197 |
|
Changes
in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
(1,810 |
) |
|
|
(482 |
) |
Prepaid
expenses and other current assets |
|
|
(554 |
) |
|
|
(354 |
) |
Other
noncurrent assets |
|
|
(164 |
) |
|
|
- |
|
Accounts
payable |
|
|
(535 |
) |
|
|
(157 |
) |
Accrued
expenses and other current liabilities |
|
|
(1,451 |
) |
|
|
97 |
|
Deferred
revenue |
|
|
(43 |
) |
|
|
(219 |
) |
Operating lease liabilities |
|
|
(337 |
) |
|
|
(300 |
) |
Net cash
provided by operating activities |
|
|
5,078 |
|
|
|
4,955 |
|
CASH
FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase
of property and equipment |
|
|
(51 |
) |
|
|
(221 |
) |
Capitalized costs included in intangible assets |
|
|
(4,509 |
) |
|
|
(3,893 |
) |
Net cash
used in investing activities |
|
|
(4,560 |
) |
|
|
(4,114 |
) |
CASH
FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Taxes
paid related to net share settlement of vesting of
restricted stock units |
|
|
(50 |
) |
|
|
(2,771 |
) |
Repurchases of common stock |
|
|
(910 |
) |
|
|
- |
|
Net cash
used in financing activities |
|
|
(960 |
) |
|
|
(2,771 |
) |
Net decrease in cash and cash equivalents |
|
$ |
(442 |
) |
|
$ |
(1,930 |
) |
Cash and
cash equivalents at beginning of period |
|
|
31,810 |
|
|
|
34,258 |
|
Cash and cash equivalents at end of period |
|
$ |
31,368 |
|
|
$ |
32,328 |
|
SUPPLEMENTAL DISCLOSURE INFORMATION |
|
|
|
|
|
|
|
|
Cash
paid for interest |
|
$ |
- |
|
|
$ |
- |
|
Cash
paid for income taxes |
|
$ |
22 |
|
|
$ |
- |
|
Share-based compensation capitalized in intangible assets |
|
$ |
872 |
|
|
$ |
723 |
|
Retirement of treasury stock |
|
$ |
938 |
|
|
$ |
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,
adjusted gross margin and FCF. Adjusted EBITDA is a financial
measure equal to net income (loss), the most directly comparable
financial measure based on GAAP, excluding interest income, net,
income tax expense, depreciation and amortization, share-based
compensation expense, 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 June 30, |
|
|
Six Months Ended June 30, |
|
(In thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income (loss) |
|
$ |
1,388 |
|
|
$ |
(205 |
) |
|
$ |
2,104 |
|
|
$ |
(98 |
) |
Interest
income, net |
|
|
(315 |
) |
|
|
- |
|
|
|
(601 |
) |
|
|
(1 |
) |
Income
tax expense |
|
|
160 |
|
|
|
44 |
|
|
|
131 |
|
|
|
219 |
|
Depreciation and amortization |
|
|
2,054 |
|
|
|
1,613 |
|
|
|
3,970 |
|
|
|
3,147 |
|
Share-based compensation expense |
|
|
1,305 |
|
|
|
1,406 |
|
|
|
2,689 |
|
|
|
2,793 |
|
Litigation costs |
|
|
45 |
|
|
|
76 |
|
|
|
48 |
|
|
|
91 |
|
Write-off of long-lived assets and others |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
3 |
|
Adjusted EBITDA |
|
$ |
4,637 |
|
|
$ |
2,934 |
|
|
$ |
8,343 |
|
|
$ |
6,154 |
|
Revenue |
|
$ |
14,680 |
|
|
$ |
12,494 |
|
|
$ |
29,306 |
|
|
$ |
25,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) margin |
|
|
9 |
% |
|
|
(2 |
%) |
|
|
7 |
% |
|
|
(0 |
%) |
Adjusted EBITDA margin |
|
|
32 |
% |
|
|
23 |
% |
|
|
28 |
% |
|
|
24 |
% |
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) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
14,680 |
|
|
$ |
12,494 |
|
|
$ |
29,306 |
|
|
$ |
25,223 |
|
Cost of revenue (exclusive of
depreciation and amortization) |
|
|
(3,240 |
) |
|
|
(2,920 |
) |
|
|
(6,419 |
) |
|
|
(6,090 |
) |
Depreciation and amortization
of intangible assets |
|
|
(1,995 |
) |
|
|
(1,551 |
) |
|
|
(3,853 |
) |
|
|
(3,023 |
) |
Gross
profit |
|
|
9,445 |
|
|
|
8,023 |
|
|
|
19,034 |
|
|
|
16,110 |
|
Depreciation and amortization
of intangible assets |
|
|
1,995 |
|
|
|
1,551 |
|
|
|
3,853 |
|
|
|
3,023 |
|
Adjusted gross
profit |
|
$ |
11,440 |
|
|
$ |
9,574 |
|
|
$ |
22,887 |
|
|
$ |
19,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
64 |
% |
|
|
64 |
% |
|
|
65 |
% |
|
|
64 |
% |
Adjusted gross
margin |
|
|
78 |
% |
|
|
77 |
% |
|
|
78 |
% |
|
|
76 |
% |
The following is a reconciliation of net cash provided by
operating activities, the most directly comparable US GAAP measure,
to FCF:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(In thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net cash provided by operating activities |
|
$ |
3,547 |
|
|
$ |
2,525 |
|
|
$ |
5,078 |
|
|
$ |
4,955 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
of property and equipment |
|
|
(7 |
) |
|
|
(108 |
) |
|
|
(51 |
) |
|
|
(221 |
) |
Capitalized costs included in intangible assets |
|
|
(2,236 |
) |
|
|
(2,099 |
) |
|
|
(4,509 |
) |
|
|
(3,893 |
) |
Free cash flow |
|
$ |
1,304 |
|
|
$ |
318 |
|
|
$ |
518 |
|
|
$ |
841 |
|
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, 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’ 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) |
|
Q3'21 |
|
|
Q4'21 |
|
|
Q1'22 |
|
|
Q2'22 |
|
|
Q3'22 |
|
|
Q4'22 |
|
|
Q1'23 |
|
|
Q2'23 |
|
Customer metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDI - billable customers(1) |
|
|
6,314 |
|
|
|
6,548 |
|
|
|
6,592 |
|
|
|
6,817 |
|
|
|
6,873 |
|
|
|
7,021 |
|
|
|
7,256 |
|
|
|
7,497 |
|
FOREWARN - users(2) |
|
|
74,377 |
|
|
|
82,419 |
|
|
|
91,490 |
|
|
|
101,261 |
|
|
|
110,051 |
|
|
|
116,960 |
|
|
|
131,348 |
|
|
|
146,537 |
|
Revenue
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual revenue %(3) |
|
|
80 |
% |
|
|
79 |
% |
|
|
77 |
% |
|
|
80 |
% |
|
|
68 |
% |
|
|
77 |
% |
|
|
75 |
% |
|
|
79 |
% |
Gross revenue retention %(4) |
|
|
95 |
% |
|
|
96 |
% |
|
|
97 |
% |
|
|
95 |
% |
|
|
94 |
% |
|
|
95 |
% |
|
|
94 |
% |
|
|
94 |
% |
Revenue from new customers(5) |
|
$ |
876 |
|
|
$ |
920 |
|
|
$ |
1,014 |
|
|
$ |
805 |
|
|
$ |
2,016 |
|
|
$ |
1,216 |
|
|
$ |
1,869 |
|
|
$ |
1,147 |
|
Base revenue from existing customers(6) |
|
$ |
9,187 |
|
|
$ |
9,114 |
|
|
$ |
9,721 |
|
|
$ |
10,164 |
|
|
$ |
10,839 |
|
|
$ |
10,574 |
|
|
$ |
11,121 |
|
|
$ |
11,707 |
|
Growth revenue from existing customers(7) |
|
$ |
1,605 |
|
|
$ |
1,224 |
|
|
$ |
1,994 |
|
|
$ |
1,525 |
|
|
$ |
2,171 |
|
|
$ |
1,279 |
|
|
$ |
1,636 |
|
|
$ |
1,826 |
|
Other
metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees - sales and marketing |
|
49 |
|
|
54 |
|
|
59 |
|
|
57 |
|
|
64 |
|
|
68 |
|
|
61 |
|
|
63 |
|
Employees - support |
|
10 |
|
|
10 |
|
|
10 |
|
|
9 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
9 |
|
Employees - infrastructure |
|
16 |
|
|
18 |
|
|
23 |
|
|
25 |
|
|
25 |
|
|
28 |
|
|
27 |
|
|
26 |
|
Employees - engineering |
|
35 |
|
|
37 |
|
|
50 |
|
|
52 |
|
|
52 |
|
|
54 |
|
|
47 |
|
|
47 |
|
Employees - administration |
|
20 |
|
|
22 |
|
|
26 |
|
|
27 |
|
|
26 |
|
|
27 |
|
|
25 |
|
|
25 |
|
(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) |
Gross revenue retention is
defined as the revenue retained from existing customers, net of
reinstated revenue, and excluding 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. Gross revenue retention percentage is calculated on a
trailing twelve-month basis. The numerator of which is 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,
with the quotient subtracted from one. Prior to Q1’22, FOREWARN
revenue was excluded from our gross revenue retention calculation.
Beginning Q4’22, our gross revenue retention calculation excludes
revenue from idiVERIFIED, which is purely transactional and
currently represents less than 3% of total 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. |
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