Financial Data and Key Metrics Changes - The company reported record revenue for Q4 2024 of $19.6 million, representing a 30% increase year-over-year [10][27] - Adjusted gross profit for the quarter was $16.1 million, with an adjusted gross margin of 82%, up four percentage points from the previous year [11][27] - Adjusted EBITDA for Q4 2024 increased 68% to $4.5 million, resulting in an adjusted EBITDA margin of 23%, up five percentage points [11][27] - Adjusted net income rose 390% to $1.3 million for the quarter, leading to adjusted earnings of $0.09 per diluted share [11][35] - For the full year 2024, revenue increased 25% to $75.2 million, with adjusted gross profit of $61.2 million and adjusted EBITDA of $23.6 million, maintaining a 31% adjusted EBITDA margin [13][39] Business Line Data and Key Metrics Changes - The IDI segment saw growth across all verticals, particularly in financial and corporate risk, which experienced significant adoption of identity solutions [29] - The emerging markets vertical, including government, legal, retail, healthcare, and repossession, delivered solid double-digit revenue growth [30] - The collections vertical continued its upward trend with its fourth consecutive quarter of double-digit revenue growth [30] - The real estate vertical, excluding FOREWARN, returned to growth with single-digit revenue expansion in Q4 2024 [31] - FOREWARN achieved another quarter of double-digit revenue growth, marking its 19th consecutive quarter of sequential growth [31] Market Data and Key Metrics Changes - The company has a growing customer base with 8,926 IDI billable customers and over 303,418 users on FOREWARN [12][26] - Contractual revenue was 77% for the quarter, down 5 percentage points from the prior year, while gross revenue retention improved to 96%, up 4 percentage points [32] - The company is in early innings across its five key verticals, with significant growth potential in financial and corporate risk, collections, real estate, investigative, and emerging markets [70][75] Company Strategy and Development Direction - The company aims to maintain a customer-centric approach, focusing on delivering extraordinary value and expanding its competitive edge through its cloud-native platform [16][17] - Plans include enhancing data assets, increasing automation, and investing in AI initiatives to drive innovation and efficiency [20][21][22] - The company is committed to pushing the boundaries of innovation and maintaining a sense of urgency in its operations [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2025, driven by a strong sales pipeline and ongoing investments in strategic areas [46] - The company anticipates continued growth in existing customer relationships and new customer acquisitions, with a focus on higher-tier customers [50] - Management expects EBITDA margins to remain consistent with 2024 levels while continuing to invest in growth initiatives [80] Other Important Information - Cash and cash equivalents were $36.5 million at year-end 2024, an increase from $32 million at the end of 2023 [36] - The company generated $14.4 million in free cash flow for 2024, a 143% increase from the previous year [39] - A special cash dividend of $0.30 per share was announced, totaling $4.2 million, paid out on February 14, 2025 [38] Q&A Session Summary Question: How can the company build on momentum in 2025 to maintain elevated top-line growth? - Management highlighted strong brand awareness, a robust sales pipeline, and ongoing investments in strategic areas as key factors for sustaining growth [44][46] Question: What are the opportunities for expanding within the existing customer base versus new customers? - Management indicated a significant opportunity to extract more revenue from existing relationships while also pursuing new customer acquisitions [50] Question: Are the recent investments in sales and marketing generating a healthy ROI? - Management confirmed that they are beginning to see ROI from recent hires and expect consistent investment in sales and marketing in 2025 [55] Question: Can you provide details about new products and their potential benefits? - Management discussed ongoing product enhancements, including AI initiatives and expanded functionalities, aimed at improving customer interactions and data extraction [59]

Red Violet, Inc. (NASDAQ:RDVT) Q4 2024 Earnings Conference Call February 27, 2025 4:30 PM ET Company Participants Camilo Ramirez - Senior Vice President of Finance & Investor Relations Derek Dubner - Chairman & Chief Executive Officer Dan MacLachlan - Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Shawn Boyd - Next Mark Capital Operator Good day, ladies and gentlemen, and welcome to Red Violet's Fourth Quarter and Full Year 2024 Earnings Conference Call. At this time, all parti ...

Financial Performance - Revenue for the years ended December 31, 2024 and 2023 was $75.2 million and $60.2 million, respectively, representing a year-over-year increase of 25%[18] - Net income for 2024 was $7.0 million compared to $13.5 million in 2023, which included a one-time deferred income tax benefit of $10.3 million[18] - Adjusted EBITDA increased from $16.4 million in 2023 to $23.6 million in 2024, reflecting a growth of 43.9%[18] Market Outlook - The global big data analytics market is projected to reach $924.4 billion by 2032, with a CAGR of 13.0% from 2024 to 2032[20] - The risk analytics market is expected to grow to $180.9 billion by 2029, with a CAGR of 24.8% from 2024 to 2029[21] Data Supplier Relationships - The company’s largest data supplier accounted for 45% and 48% of total data acquisition costs for the years ended December 31, 2024 and 2023, respectively[40] - The remaining minimum purchase commitments with the largest data supplier through the end of the amended term is $8.1 million as of December 31, 2024[40] Product Development and Competition - The company aims to enhance functionality and develop new products to improve customer experience and decision-making capabilities[33] - The company’s cloud-native, AI/ML-driven platform allows for the assimilation and structuring of billions of records, providing real-time identity intelligence[27] - The company faces competition from various data and analytics suppliers, which may lead to price competition and reduced profit margins[37] Workforce and Management - The company employs a total of 215 full-time employees as of December 31, 2024, with no labor organization representation[46] - The management team has a strong track record and 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 sector[46] - The executive team includes experienced leaders such as Derek Dubner (CEO), James Reilly (President), Daniel MacLachlan (CFO), and Jeff Dell (CIO), all of whom have extensive backgrounds in the industry[49][50][51][52] Operational Challenges - The company is subject to various federal, state, and local laws, which could materially impact its operations and costs if regulations change[43] - The company’s results are subject to seasonal fluctuations, particularly in the fourth quarter[44] Organizational Changes - The company has successfully transitioned from a development-focused to a sales-driven organization, enhancing its growth potential[45] - The company has maintained good relations with employees and has not experienced any work stoppages[46] - The company spun off its risk management business in March 2018, creating a separate entity for its shareholders[47] Corporate Governance - The company’s corporate website provides access to its financial reports, which are filed with the SEC[48]

Company Presentation February 2025 Statement Regarding Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). These non-GAAP financial measures are in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. There are a number of limitations related to the use of these non- GAAP financial meas ...

Core Insights - Red Violet, Inc. reported a record fourth quarter revenue of $19.6 million, representing a 30% increase year-over-year, and a full year revenue of $75.2 million, up 25% from the previous year [1][4][14] - The company achieved a net income of $0.9 million in Q4 2024, compared to a net loss of $1.1 million in Q4 2023, resulting in earnings of $0.06 per share [4][20] - Adjusted EBITDA for the fourth quarter increased by 68% to $4.5 million, with an adjusted EBITDA margin of 23% [4][19] Fourth Quarter Financial Results - Total revenue for Q4 2024 was $19.6 million, a 30% increase from Q4 2023 [4] - Gross profit rose 43% to $13.7 million, with a gross margin improvement to 70% from 64% [4] - Adjusted gross profit increased 37% to $16.1 million, with an adjusted gross margin of 82% [4] - Net income was $0.9 million, translating to a net income margin of 4% compared to a net loss margin of 7% in the prior year [4] - Cash from operating activities increased 59% to $6.7 million [4] Full Year Financial Results - Full year revenue for 2024 reached $75.2 million, a 25% increase from $60.2 million in 2023 [4][14] - Gross profit for the year was $51.8 million, up 33%, with a gross margin of 69% [4] - Net income for the year was $7.0 million, down from $13.5 million in 2023, resulting in earnings of $0.51 per share [4][14] - Adjusted EBITDA for the full year increased 44% to $23.6 million, with an adjusted EBITDA margin of 31% [4][19] Business Highlights - The company added 183 customers to its IDI™ platform in Q4, ending the year with 8,926 customers [4] - FOREWARN user base grew by 18,451 in Q4, totaling 303,418 users, with over 525 REALTOR Associations contracted [4] - The onboarding of higher-tier customers continued, with 96 customers contributing over $100,000 in revenue in 2024, compared to 72 in 2023 [4] - The company repurchased 292,744 shares of common stock in 2024 at an average price of $19.81 per share [5]

Core Insights - FOREWARN, LLC has partnered with the Denver Metro Association of REALTORS (DMAR) to provide its services to over 7,000 real estate professionals in the Denver area, focusing on enhancing agent safety [1][2][3] Company Overview - FOREWARN is a leading provider of real-time information solutions for real estate agents, utilizing advanced analytics to analyze billions of data points for identity verification, criminal history checks, and client information validation [2][5] - The services offered by FOREWARN are available to DMAR members at no additional cost, promoting proactive safety measures for real estate agents [2][3] Industry Context - The partnership addresses evolving challenges in safety and fraud prevention within the real estate industry, emphasizing the importance of equipping agents with the right resources [3] - The use of FOREWARN's technology aims to provide agents with confidence and security in their daily operations, thereby enhancing overall safety in real estate transactions [3][5]

Core Insights - Red Violet, Inc. will report its financial results for Q4 and the full year ended December 31, 2024 on February 27, 2025 after U.S. market close [1] - The earnings call is scheduled for February 27, 2025 at 4:30pm ET, where the company will discuss its results and provide a business update [1] Participant Registration & Webcast Information - Participants must register to receive unique dial-in credentials for the earnings call, and a general dial-in number will not be provided [2][3] - The earnings call will be simultaneously webcast on the Investors section of the Red Violet website [2][3] Company Overview - Red Violet specializes in analytics and information solutions, focusing on identity intelligence through proprietary technologies and analytical capabilities [4] - The company's solutions are utilized for identity verification, risk mitigation, due diligence, fraud detection, regulatory compliance, and customer acquisition [4] - Red Violet's intelligent platform, CORE™, is designed for enterprises and can handle massive datasets, transforming data into actionable intelligence [4]

Core Insights - FOREWARN, LLC has partnered with the Greater Fort Worth Association of REALTORS® (GFWAR) to provide its services to over 4,000 real estate professionals in the Greater Fort Worth area, focusing on proactive agent safety [1][2][3] Company Overview - FOREWARN offers a platform that analyzes billions of data points to help real estate agents mitigate risks by verifying identities, searching criminal histories, and validating client information using just a phone number [2][5] - The services provided by FOREWARN are available to GFWAR members at no additional cost, enhancing agent safety and confidence during property showings [2][3] Industry Context - The initiative reflects a growing emphasis on safety and fraud prevention within the real estate industry, as agents face various risks in their daily operations [3][5] - Suzanne Westrum, CEO of GFWAR, emphasized the importance of providing members with advanced resources like FOREWARN to address safety and fraud-related risks [3]

Core Insights - FOREWARN, LLC has partnered with the Greater Baltimore Board of REALTORS® to provide its services to over 5,000 real estate professionals in the Baltimore area, focusing on agent safety [1][2][3] - The FOREWARN service analyzes billions of data points to help real estate agents verify identities, check criminal histories, and validate client information using just a phone number, enhancing safety during property showings [2][5] - GBBR members will have access to FOREWARN services at no additional cost, reinforcing the association's commitment to member safety and risk mitigation [2][3] Company Overview - FOREWARN is a leading provider of real-time information solutions for real estate agents, leveraging powerful analytics and a vast data repository to ensure safer engagements and smarter interactions [5][6] - The technology developed by red violet, the parent company of FOREWARN, focuses on identity intelligence and risk mitigation, enabling organizations to operate with confidence [6]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - Red Violet, Inc. (RDVT) is highlighted as a suitable candidate that has shown a solid price increase of 28.8% over the past 12 weeks, indicating investor confidence [3]. - RDVT has also experienced a price increase of 14.4% over the last four weeks, confirming that the upward trend is still intact [4]. Group 2: Technical Indicators - RDVT is currently trading at 90.6% of its 52-week high-low range, suggesting it may be on the verge of a breakout [4]. - The stock carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. Group 3: Analyst Recommendations - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking system [6]. - RDVT has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 4: Additional Opportunities - Besides RDVT, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [7]. - The article mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [7].