Company Overview - Red Violet, Inc. (RDVT) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3] Price Performance - RDVT shares have increased by 15.05% over the past week, outperforming the Zacks Internet - Software and Services industry, which rose by 5.33% during the same period [5] - Over the past month, RDVT's price change is 33.96%, significantly higher than the industry's 14.18% performance [5] - In the last quarter, RDVT shares have risen by 22.24%, and over the past year, they have gained 141.25%, while the S&P 500 has moved -2.89% and 12.85%, respectively [6] Trading Volume - RDVT's average 20-day trading volume is 128,270 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, one earnings estimate for RDVT has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $0.92 to $1.06 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [9] Conclusion - Considering the strong price performance, positive earnings outlook, and high momentum score, RDVT is positioned as a promising investment opportunity [11]

BOCA RATON, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced that it will present at the 25th Annual B. Riley Securities Investor Conference being held May 21-22, 2025 at The Ritz-Carlton, Marina del Ray. Derek Dubner, Chief Executive Officer, and Daniel MacLachlan, Chief Financial Officer, will present and host investor meetings on May 21, 2025. About red violet® At red violet, we build proprietary technologies a ...

Exhibit 99.1 red violet Announces First Quarter 2025 Financial Results Revenue Increases 26% to a Record $22.0 Million, Generating GAAP EPS of $0.24 BOCA RATON, Fla. – May 7, 2025 – Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended March 31, 2025. "We are extremely pleased to report another record-setting quarter, marking a strong start to 2025," stated Derek Dubner, red violet's CEO. "Our team continues to execut ...

Core Insights - FOREWARN, LLC has partnered with NEXUS Association of REALTORS to provide its services to over 5,000 real estate professionals in New Jersey, focusing on enhancing agent safety [1][3] - The FOREWARN service offers real-time data analysis, allowing agents to verify identities, check criminal histories, and validate client information using just a phone number [2][5] - NEXUS members will have access to FOREWARN services at no additional cost, promoting proactive safety measures for real estate agents [2][3] Company Overview - FOREWARN is a leading provider of real-time information solutions for real estate agents, leveraging extensive data analytics to enhance safety and decision-making [1][5] - The company aims to ensure safer engagements and smarter interactions through innovative solutions that provide instant knowledge [5][6] - Red Violet, the parent company of FOREWARN, specializes in identity intelligence and risk mitigation technologies, serving various sectors including real estate [6]

Red Violet, Inc. (RDVT) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 43.48%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.09, delivering no surprise. Over the last four quarters, the company has su ...

Financial Data and Key Metrics Changes - Revenue for the quarter increased by 26% to a record $22 million, with adjusted gross profit reaching $18.3 million and an adjusted gross margin of 83% [7][14] - Adjusted EBITDA rose by 47% to a record $8.4 million, resulting in an adjusted EBITDA margin of 38%, up six percentage points [7][15] - Adjusted net income increased by 53% to a record $4.8 million, leading to adjusted earnings of $0.33 per diluted share [7][21] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by over 300 customers sequentially, ending the quarter at 9,241 customers [7][17] - The emerging markets vertical led revenue growth, while the investigative vertical continued to perform well, driven by law enforcement [17][18] - The collections vertical showed mid-single-digit growth, with the highest year-over-year growth rate since 2020 when normalized for prior year impacts [18] - The real estate vertical, excluding FORWARN, declined by low single digits due to affordability issues [19] Market Data and Key Metrics Changes - Over 545 realtor associations are now contracted to use FORWARN, which added more than 20,000 users during the quarter, marking its twentieth consecutive quarter of revenue growth [8][19] - Contractual revenue represented 74% of total revenue for the quarter, down four percentage points from the prior year [19] Company Strategy and Development Direction - The company focuses on increasing productivity, implementing automation, and enhancing proprietary data generation and aggregation, including the use of AI [11][31] - The business model has proven resilient through various economic cycles, ensuring relevance and mission-critical status regardless of market conditions [9][10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model's durability amid economic volatility, highlighting strong demand across various customer segments [8][10] - The company is optimistic about the opportunity pipeline and expects continued onboarding across customer verticals [25][26] Other Important Information - Cash and cash equivalents were $34.6 million as of March 31, 2025, with a special cash dividend of $0.30 per share paid out [21][22] - The company generated $5 million in cash from operating activities, compared to $4.3 million for the same period in 2024 [21] Q&A Session Summary Question: What is driving the strong growth in IDI customers? - Management noted consistent volume across customer bases and verticals, with no impact from broader economic uncertainty [25][26] Question: Any highlights on larger customers and their trends? - The number of customers generating over $100,000 in revenue annually has grown to approximately 110, indicating strong performance in medium and larger enterprise segments [27][28] Question: What areas of technology investment are being focused on for long-term growth? - The company is investing in enhancing its identity graph and proprietary data generation, with a focus on AI initiatives to provide current risk signals to customers [29][31]

Financial Data and Key Metrics Changes - Revenue for the quarter increased by 26% to a record $22 million, with adjusted gross profit reaching $18.3 million and an adjusted gross margin of 83% [8][16] - Adjusted EBITDA rose by 47% to a record $8.4 million, resulting in an adjusted EBITDA margin of 38%, up six percentage points [8][16] - Adjusted net income increased by 53% to a record $4.8 million, leading to adjusted earnings of $0.33 per diluted share [8][16] Business Line Data and Key Metrics Changes - The IDI billable customer base grew by over 300 customers sequentially, ending the quarter at 9,241 customers [9][19] - The emerging markets vertical led revenue growth, while the investigative vertical continued to perform well, driven by law enforcement [19][20] - The collections vertical showed mid-single-digit growth, with the highest year-over-year growth rate since 2020 when normalized for prior year impacts [20] Market Data and Key Metrics Changes - ForeWarn added 21,918 users during the first quarter, ending with 325,336 users, marking its twentieth consecutive quarter of sequential revenue growth [9][21] - Contractual revenue represented 74% of total revenue for the quarter, down four percentage points from the prior year due to one-time transactional revenue [21] Company Strategy and Development Direction - The company focuses on increasing productivity, implementing automation, and enhancing proprietary data generation and aggregation, including the use of AI [13][35] - The business model has proven resilient through various economic cycles, ensuring relevance and mission-critical status regardless of market conditions [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to perform through economic fluctuations, highlighting a structural shift in consumer dynamics [12][25] - The company remains focused on sustaining momentum, expanding reach, and creating long-term value for shareholders [25][40] Other Important Information - Cash and cash equivalents were $34.6 million as of March 31, 2025, with a special cash dividend of $0.30 per share paid out [23][24] - The company generated $5 million in cash from operating activities, compared to $4.3 million for the same period in 2024 [23] Q&A Session Summary Question: What is driving the strong growth in IDI customers? - Management noted consistent volume across customer verticals and strong onboarding across various customer sizes, expecting this trend to continue [28][29] Question: Are larger customers slowing down or picking up amid macro uncertainty? - The number of customers generating over $100,000 in revenue annually has increased to around 110, indicating continued growth in medium and larger enterprise customers [30] Question: What areas of technology investment are being focused on for long-term growth? - The company is investing in enhancing its identity graph and proprietary data generation, with a focus on risk signals and automation to improve financial performance [32][35]

PART I - FINANCIAL INFORMATION [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements for the three months ended March 31, 2025, show significant growth compared to the same period in 2024, with revenue increasing by 26% to $22.0 million and net income growing by 93% to $3.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $34,603 | $36,504 | | Total current assets | $45,902 | $46,192 | | Total assets | $99,089 | $98,531 | | Total current liabilities | $5,099 | $10,307 | | Total liabilities | $7,241 | $11,899 | | Total shareholders' equity | $91,848 | $86,632 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $22,003 | $17,511 | | Income from operations | $4,211 | $1,983 | | Net income | $3,440 | $1,784 | | Basic EPS | $0.25 | $0.13 | | Diluted EPS | $0.24 | $0.13 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,001 | $4,305 | | Net cash used in investing activities | ($2,519) | ($2,392) | | Net cash used in financing activities | ($4,383) | ($1,798) | | Net (decrease) increase in cash | ($1,901) | $115 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong Q1 2025 performance to a 26% increase in revenue, driven by new customer onboarding and stable recurring revenue, with gross margin improving to 72% from 66% year-over-year - The company provides identity intelligence solutions through its AI/ML-driven platform, CORE™, marketed under two main brands: IDI™ for various industries and FOREWARN® for the real estate sector[67](index=67&type=chunk)[69](index=69&type=chunk) Key Performance Indicators (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | IDI Billable Customers | 9,241 | 8,241 | | FOREWARN Users | 325,336 | 236,639 | Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Change YoY | | :--- | :--- | :--- | | Total Revenue | $22.0 million | +26% | | Gross Profit | $15.8 million | +37% | | Net Income | $3.4 million | +93% | | Adjusted EBITDA | $8.4 million | +47% | | Net cash from operations | $5.0 million | +16% | - In Q1 2025, the company paid a special cash dividend of **$0.30 per share**, totaling **$4.2 million**[78](index=78&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q1 2025, revenue grew 26% to $22.0 million, driven by an 80% increase from new customers and a 20% increase from existing customers, while net income increased 93% to $3.4 million Revenue Growth Breakdown (Q1 2025 vs Q1 2024) | Revenue Source | Increase ($M) | Growth Rate | | :--- | :--- | :--- | | New Customers | $1.3 | 80% | | Existing Customers | $3.2 | 20% | | **Total** | **$4.5** | **26%** | - Cost of revenue as a percentage of revenue decreased from **21% to 17%** year-over-year, which is expected to continue declining as revenue grows due to a fixed-cost data licensing structure[92](index=92&type=chunk) - Sales and marketing expenses increased by **$1.7 million (46%)**, primarily due to a **$1.6 million** increase in personnel-related expenses to expand go-to-market capabilities[93](index=93&type=chunk)[98](index=98&type=chunk) - The **92% increase** in income before taxes was driven by a **$4.5 million** revenue increase and a **$0.1 million** decrease in cost of revenue, partially offset by increased personnel, depreciation, and share-based compensation expenses[99](index=99&type=chunk)[105](index=105&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had $34.6 million in cash and cash equivalents, with net cash from operations at $5.0 million for the quarter, and believes existing resources are sufficient for the next twelve months - Net cash provided by operating activities was **$5.0 million** in Q1 2025, driven by **$3.4 million** in net income and **$5.3 million** in non-cash adjustments, offset by a **$3.7 million** use of cash in operating assets and liabilities[105](index=105&type=chunk)[106](index=106&type=chunk) - Net cash used in financing activities of **$4.4 million** in Q1 2025 was primarily due to a **$4.2 million** special dividend payment and **$0.2 million** for taxes on vested RSUs[108](index=108&type=chunk)[115](index=115&type=chunk) - The company has material commitments of **$11.5 million** under data licensing agreements as of March 31, 2025[109](index=109&type=chunk) - Management believes existing cash and projected cash flows will be sufficient to fund operations and capital expenditures for at least the next twelve months[111](index=111&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Red Violet, Inc. is not required to provide the information requested under this item - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[116](index=116&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of March 31, 2025, concluding they were effective with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[118](index=118&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[119](index=119&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in a lawsuit filed by Atlas Data Privacy Corporation and others, alleging failure to comply with New Jersey's 'Daniel's Law,' which the company is vigorously defending - The company is involved in a legal proceeding initiated by Atlas Data Privacy Corporation regarding alleged violations of New Jersey's 'Daniel's Law'[61](index=61&type=chunk)[121](index=121&type=chunk) - The company is defending itself vigorously and has notified its insurer, which has confirmed the claim falls within its insurance coverage, subject to policy limits[62](index=62&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors have occurred since the filing of the 2024 Form 10-K[122](index=122&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the three months ended March 31, 2025, under its Stock Repurchase Program, with approximately $4.6 million remaining available for future repurchases - No common stock was repurchased during Q1 2025 under the Stock Repurchase Program[124](index=124&type=chunk) - Approximately **$4.6 million** remains available for future repurchases under the authorized program[124](index=124&type=chunk) [Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - The company reports no defaults upon senior securities[126](index=126&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - This item is not applicable to the company[127](index=127&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) During the quarter ended March 31, 2025, no officers or directors had any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements in effect - No officers or directors had Rule 10b5-1 trading plans in effect during the first quarter of 2025[128](index=128&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, which include CEO and CFO certifications pursuant to the Sarbanes-Oxley Act (Sections 302 and 906) and Inline XBRL data files - Exhibits filed include CEO and CFO certifications (**31.1, 31.2, 32.1, 32.2**) and Inline XBRL documents (**101.INS, 101.SCH, 104**)[130](index=130&type=chunk)

Core Insights - Red Violet, Inc. reported a record revenue increase of 26% to $22.0 million for the first quarter of 2025 compared to the same period in 2024, with a GAAP EPS of $0.24 [1][5][12] Financial Performance - Gross profit rose by 37% to $15.8 million, with gross margin improving to 72% from 66% [5][12] - Adjusted gross profit increased by 33% to $18.3 million, and adjusted gross margin rose to 83% from 79% [5][12] - Net income surged by 93% to $3.4 million, resulting in earnings of $0.25 and $0.24 per basic and diluted share, respectively [5][12] - Adjusted EBITDA grew by 47% to $8.4 million, with adjusted EBITDA margin increasing to 38% from 32% [5][12] - Adjusted net income increased by 53% to $4.8 million, leading to adjusted earnings of $0.35 and $0.33 per basic and diluted share, respectively [5][12] Cash Flow and Dividends - Net cash provided by operating activities rose by 16% to $5.0 million [5][14] - Cash and cash equivalents stood at $34.6 million as of March 31, 2025 [5][14] - The company paid a special cash dividend of $0.30 per share, totaling $4.2 million, to shareholders of record as of January 31, 2025 [5][12] Customer Metrics - The company added 315 customers to its IDI platform, ending the quarter with 9,241 customers [5][12] - FOREWARN saw an addition of 21,918 users, bringing the total to 325,336 users, with over 545 REALTOR Associations contracted to use the service [5][12] Business Model and Strategy - Red Violet focuses on proprietary technologies and analytical capabilities to deliver identity intelligence, enabling real-time identification and location of people, businesses, and assets [4][5] - The company's solutions are utilized for identity verification, risk mitigation, fraud detection, and regulatory compliance, among other applications [4][5]

Core Insights - Red Violet, Inc. will participate in the 20th Annual Needham Technology, Media, & Consumer Conference from May 8-13, 2025, with investor meetings hosted virtually on May 12, 2025 [1] Company Overview - Red Violet, Inc. specializes in analytics and information solutions, focusing on identity intelligence through proprietary technologies and analytical capabilities [2] - The company's solutions facilitate real-time identification and location of individuals, businesses, and assets, serving purposes such as identity verification, risk mitigation, due diligence, fraud detection, regulatory compliance, and customer acquisition [2] - Red Violet's intelligent platform, CORE™, is designed for enterprises but adaptable for organizations of all sizes, transforming large datasets into actionable intelligence [2]