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]

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, 2022 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 ...

Red Violet, Inc. (NASDAQ:RDVT) Q3 2022 Earnings Conference Call November 7, 2022 4:30 PM ET Company Participants Camilo Ramirez - Vice President, Finance and Investor Relations 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 Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answ ...

Financial Performance - Total revenue increased by 29% to $15.0 million, with platform revenue rising by 31% to $14.8 million, while services revenue decreased by 29% to $0.2 million[75]. - Gross profit increased by 36% to $10.3 million, resulting in a gross margin increase to 69% from 65%[75]. - Adjusted EBITDA rose by 43% to $5.2 million, with an adjusted EBITDA margin of 35% compared to 31% in the previous year[75]. - Net income increased by 80% to $2.3 million, translating to $0.16 per basic and diluted share[75]. - Revenue increased by $3.3 million or 29% to $15.0 million for the three months ended September 30, 2022, compared to $11.7 million for the same period in 2021[79]. - Net income increased by $1.0 million or 80% to $2.3 million for the three months ended September 30, 2022, compared to $1.3 million for the same period in 2021[86]. - For the nine months ended September 30, 2022, revenue increased by $7.4 million or 23% to $40.2 million compared to $32.8 million for the same period in 2021[87]. - The company reported net income of $2.3 million for the three months ended September 30, 2022, compared to $1.3 million for the same period in 2021, showing a year-over-year increase of 76.9%[101]. Customer Growth - The company added 56 customers to IDI during the third quarter, bringing the total to 6,873 customers[75]. - Revenue from new customers increased by $1.1 million or 130%, while base revenue from existing customers rose by $1.6 million or 18% for the three months ended September 30, 2022[79]. - The IDI billable customer base grew from 6,314 customers as of September 30, 2021, to 6,873 customers as of September 30, 2022[79]. - FOREWARN saw an addition of 8,790 users in the third quarter, ending with 110,051 users, with over 225 REALTOR® Associations contracted to use the service[75]. Cash and Liquidity - Cash and cash equivalents stood at $31.3 million as of September 30, 2022[75]. - Cash and cash equivalents as of September 30, 2022, were approximately $31.3 million, indicating sufficient resources to finance operations for the next twelve months[102]. - The company anticipates funding operations using available cash and cash flow generated from operations within the next twelve months[100]. Expenses and Costs - Cost of revenue increased by $0.3 million or 10% to $3.1 million for the three months ended September 30, 2022, while the cost of revenue as a percentage of revenue decreased to 20% from 24%[80][81]. - Sales and marketing expenses rose by $0.4 million or 22% to $2.6 million for the three months ended September 30, 2022, primarily due to increased salaries and benefits[82]. - General and administrative expenses increased by $1.4 million or 32% to $5.5 million for the three months ended September 30, 2022, driven by higher employee salaries and professional fees[83]. Shareholder Equity and Capital - As of September 30, 2022, total shareholders' equity was $72.2 million[101]. - The company has repurchased a total of 50,000 shares of its common stock at an average price of $17.52 per share under its Stock Repurchase Program[75]. - Material commitments under data licensing agreements amounted to $28.7 million as of September 30, 2022[100]. - The company may need to raise capital through additional equity and/or debt, which could dilute stockholders if terms are unfavorable[103]. - As of September 30, 2022, there were no off-balance sheet arrangements[104]. Operational Insights - The company continues to enhance its go-to-market capabilities with the expansion of its sales team, focusing on strategic areas within fraud and identity[75]. - The idiVERIFIED service is expected to return to pre-Covid levels in the first half of 2023[67]. - For the nine months ended September 30, 2022, net cash provided by operating activities was $8.1 million, compared to $7.0 million for the same period in 2021, reflecting an increase of approximately 15.7%[97]. - Net cash used in investing activities for the nine months ended September 30, 2022, was $6.4 million, up from $3.8 million in 2021, indicating a 68.4% increase[98]. - Net cash used in financing activities was $4.7 million for the nine months ended September 30, 2022, compared to $2.8 million in 2021, representing a 67.9% increase[99].