Red Violet, Inc. (NASDAQ:RDVT) Q4 2023 Earnings Conference Call March 7, 2024 4:30 PM ET Company Participants Camilo Ramirez - Vice President of Finance and IR Derek Dubner - Chairman and Chief Executive Officer Dan MacLachlan - Chief Financial Officer Conference Call Participants Operator Good day ladies and gentlemen and welcome to Red Violet's Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer se ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-38407 RED VIOLET, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or or ...

Red Violet, Inc. (NASDAQ:RDVT) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Company Participants Camilo Ramirez - Vice President of Finance and IR Derek Dubner - Chairman and CEO Dan MacLachlan - CFO Conference Call Participants David Polansky - Immersion Investments LLC Operator Good day ladies and gentlemen. Welcome to Red Violet's Third Quarter Earnings Conference Call. At this time all participants are in listen-only mode. Later we will conduct a question-and-answer session. [Operator In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38407 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or RED VIOLET, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 82-2408531 (State or Other Jurisdiction ...

Red Violet, Inc. (NASDAQ:RDVT) Q2 2023 Earnings Conference Call August 7, 2023 4:30 PM ET Company Participants Camilo Ramirez - Vice President, Finance & Investor Relations Derek Dubner - Chairman & Chief Executive Officer Dan MacLachlan - Chief Financial Officer Conference Call Participants Operator Good day ladies and gentlemen, and welcome to Red Violet's Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38407 RED VIOLET, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Orga ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $14.6 million, a 15% increase compared to the same period in 2022 [13][24] - Adjusted gross profit was $11.4 million, resulting in an adjusted gross margin of 78%, up 3 percentage points year-over-year [13][24] - Adjusted EBITDA for the quarter was $3.7 million, also up 15% from the previous year, with an adjusted EBITDA margin consistent at 25% [13][24] - Net income increased by $0.6 million or 569% to $0.7 million, with earnings of $0.05 per share [48] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by 235 customers sequentially, ending Q1 2023 at 7,256 customers [6][31] - FOREWARN added over 14,300 users during Q1, ending the quarter with 131,348 users, with over 255 realtor associations contracted [6][14] - Services revenue represented approximately 2% of total revenue for Q1 2023, down from 2.5% in 2022, indicating a continued decrease in this segment [15] Market Data and Key Metrics Changes - The company experienced broad-based demand across various sectors, particularly in financial services and investigative spaces, while collections remained stagnant [19][30] - Gross revenue retention was reported at 94%, down from 97% in the prior year [14] Company Strategy and Development Direction - The company continues to invest in its business to penetrate target markets and advance its product roadmap, with a focus on optimizing productivity and efficiency [5][27] - New product launches, including idiCREM and coreIDENTITY, are aimed at enhancing the identity verification solutions for the background screening industry [7][26] - The company is optimistic about future growth, particularly with larger enterprise prospects and ongoing marketing initiatives [41][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to weather economic uncertainties while maintaining a long-term growth perspective [27][41] - There is cautiousness observed among larger enterprises regarding spending, but smaller to medium-sized enterprises are not showing similar hesitance [54] Other Important Information - The company reduced its total headcount from 187 to 170 employees, which is expected to yield cost savings not reflected in Q1 results [28][59] - Cash and cash equivalents were $30.8 million at the end of Q1 2023, a slight decrease from $31.8 million at the end of 2022 [34] Q&A Session Summary Question: What industries are seeing strength and where are the new customers coming from? - The company noted good uptake across financial services, investigative spaces, and public sector, with a consistent addition of new customers [19][50] Question: What is the size of the new IDI customers relative to the historic customer base? - The company is seeing more medium and larger enterprises entering the customer base, which presents opportunities for volume increases over time [51] Question: Is there any cautiousness from financial service customers? - Management indicated some hesitation from larger enterprises regarding spending, but smaller to medium-sized enterprises are not showing similar caution [54]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38407 RED VIOLET, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 82-2408531 (State or Other Jurisdiction of ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $13.1 million, a 16% increase year-over-year, marking a record fourth quarter for the company [41][42] - Adjusted gross profit for Q4 was $10 million, resulting in an adjusted gross margin of 77%, up 3 percentage points from the previous year [16][26] - Adjusted EBITDA for Q4 was $1.5 million, a 16% increase compared to the prior year [16][50] - The company achieved its first full year of GAAP profitability in 2022, generating net income of $0.6 million [42][48] Business Line Data and Key Metrics Changes - Platform revenue increased by 19% to $12.9 million in Q4, while services revenue decreased by 54% to $0.2 million [41][23] - The IDI billable customer base grew by 148 customers sequentially, ending Q4 with 7,021 customers [51] - FOREWARN added over 6,900 users during Q4, bringing the total to 116,960 users [51] Market Data and Key Metrics Changes - The company reported a revenue attrition percentage of 5%, up from 4% in the prior year, and expects this to trend between 5% and 10% in the foreseeable future [25] - The markets for the company's solutions continue to show strong fundamentals and increasing opportunities, particularly in identity and fraud prevention [22] Company Strategy and Development Direction - The company is focused on executing its long-term strategic plan while continuing to invest in product development and market expansion [7][9] - A robust product roadmap is in place for 2023 and beyond, including enhancements to existing solutions and new offerings in various sectors [18][19] - The company aims to leverage its strong balance sheet and cash flow to reinvest in business growth while maintaining financial prudence [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2023, highlighting strong demand for existing and new solutions despite the uncertain economic environment [10][32] - The company is well-positioned to advance its strategic plan while many competitors are downsizing [9][10] - Management noted that the digital transformation and the omnipresence of cybercrimes and fraud present significant opportunities for growth [19] Other Important Information - General and administrative expenses increased by 14% to $7.1 million in Q4, primarily due to higher employee salaries and benefits [27] - Cash and cash equivalents were $31.8 million at the end of 2022, down from $34.3 million at the end of 2021 [29] Q&A Session Summary Question: Can you remind me what the dollar value of the headwind you faced this year was? - The headwind was approximately $0.5 million per quarter due to a customer acquisition [35][65] Question: Can you give me a feel for the repo market and the real estate market? - There has been an uptick in the repo market, and the real estate market has stabilized after initial impacts from rising mortgage rates [70][88] Question: Are you ready for this year with the current headcount? - The company does not plan to significantly increase headcount in 2023, as it is well-positioned with current staff [97] Question: Is it fair to expect that Q1 revenues will be above Q4 revenues? - Management indicated that it is a fair expectation for Q1 revenues to exceed Q4 revenues [86] Question: What are the expectations for margins in 2023? - Margins are expected to remain consistent with 2022, in the mid-20s range, with potential for improvement as revenue grows [78][100]

Financial Performance - For the years ended December 31, 2022 and 2021, revenue increased to $53.3 million from $44.0 million, representing a growth of 21.6%[21] - Net income for the same periods was $0.6 million in 2022 compared to $0.7 million in 2021, showing a decrease of 14.3%[21] - Adjusted EBITDA rose to $12.9 million in 2022 from $10.9 million in 2021, reflecting an increase of 18.4%[21] Market Trends - The global data and business analytics services market was valued at $215.7 billion in 2021, with a projected CAGR of 12.8% from 2021 to 2025[23] - The risk analytics market is expected to grow to $70.5 billion by 2027, with a CAGR of 12.4% from 2022 to 2027[24] Customer and Supplier Dynamics - The company’s largest data supplier accounted for 49% of total data acquisition costs for the years ended December 31, 2022 and 2021[40] - As of December 31, 2022, one individual customer accounted for 11% of accounts receivable, net[39] Product Development and Technology - The company aims to enhance functionality and develop new products to better serve customer needs and expand applications[34] - The company’s cloud-native platform allows for the assimilation and structuring of billions of disparate records, providing real-time identity intelligence[31] - The company is committed to investing in technology and people to maintain a competitive edge in the rapidly evolving data and analytics sector[34] - The company has overseen the expansion of its proprietary technology platform while transitioning from a development-focused to a sales-driven company[45] Workforce and Management - The company employs a total of 186 full-time employees and one part-time employee as of December 31, 2022[46] - The management team has a strong track record and significant expertise in the data and analytics sector, positioning the company for organic growth[45] - The company has not experienced significant difficulties in attracting or retaining qualified employees, despite intense competition in the recruiting sector[46] - The company has not experienced any work stoppages and considers its relations with employees to be good[46] - The executive team includes Derek Dubner as CEO, James Reilly as President, Daniel MacLachlan as CFO, and Jeff Dell as CIO, all with extensive experience in the industry[49][50][51][52][53] Corporate Structure - The company spun off its risk management business on March 26, 2018, distributing shares of its subsidiary to stockholders[47] - The company’s principal executive offices are located in Boca Raton, Florida[48] - The company is classified as a smaller reporting company and is not required to include certain market risk disclosures[194]