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]

Financial Data and Key Metrics Changes - Total revenue reached a record $15 million, representing a 29% increase year-over-year [8][15] - Adjusted gross profit was a record $12 million, resulting in an adjusted gross margin of 80%, up four percentage points from the previous year [8][15] - Adjusted EBITDA for the quarter was a record $5.2 million, up 43% from the prior year, with an adjusted EBITDA margin of 35% compared to 31% in the prior year [8][15] - Net income was a record $2.3 million, an 80% increase year-over-year, leading to earnings of $0.16 per diluted share [9][20] Business Line Data and Key Metrics Changes - Platform revenue increased by 31% to $14.8 million, while services revenue decreased by 29% to $0.2 million [15] - The IDI billable customer base grew by 56 customers sequentially, ending the quarter at 6,873 customers [17] - FOREWARN added 8,790 users during the quarter, ending with 110,051 users, with over 225 realtor associations contracted [9][17] Market Data and Key Metrics Changes - Revenue from the real estate marketing segment remained relatively flat due to a spike in mortgage rates and housing market volatility [10] - Collections revenue was flat, with expectations for future growth as consumer financial health deteriorates [11] Company Strategy and Development Direction - The company is focused on expanding its sales and product teams to capitalize on opportunities and drive its product roadmap [8][12] - There is a commitment to invest in strategic areas where strong traction is observed, including identity, property solutions, and financial services [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing sales pipeline and the ability to win against larger competitors [8][9] - The company remains flexible in its operations to adapt to the dynamic economic environment [11] - There is an expectation for collections activity to pick up in the near future, leading to revenue growth from that vertical [11] Other Important Information - Cash and cash equivalents were $31.3 million at the end of the quarter, down from $34.3 million at the end of the previous year [21] - The company generated $2.9 million in free cash flow for the quarter, an increase from $2.4 million in the same period last year [21] Q&A Session Summary - Management reiterated the strong performance in a challenging economic environment and expressed excitement about the growing pipeline and product roadmap [27]

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].

Red Violet, Inc. (NASDAQ:RDVT) Q2 2022 Earnings Conference Call August 9, 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 Second Quarter 2022 Earnings Conference Call. At this time all aprticipants’ are in a listen-only mode. Later, we will conduct a question-and-answ ...

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, 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) (State or Other Jurisdiction of Incorporation or Orga ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $12.7 million, a 25% increase year-over-year, marking the highest quarterly revenue ever [12][20] - Adjusted gross profit reached a record $9.6 million, resulting in a margin of 75%, up 2 percentage points from the previous year [12][29] - Adjusted EBITDA for the quarter was $3.2 million, a 12% increase over the prior year, with an adjusted EBITDA margin of 25% compared to 28% in the prior year [12][20][25] - Net income for the quarter was $0.1 million, compared to a loss of $0.6 million in the prior year [32][33] - Cash and cash equivalents were $34.8 million at March 31, 2022, compared to $34.3 million at December 31, 2021 [34] Business Line Data and Key Metrics Changes - Platform revenue increased 24% to a record $12.2 million, while services revenue was up 27% to $0.5 million [12][20] - The IDI billable customer base grew by 44 customers sequentially, ending the quarter at 6,592 customers [14][26] - FOREWARN added 9,071 users during the first quarter, ending with 91,490 users, with over 200 realtor associations contracted to use the service [14][26] Market Data and Key Metrics Changes - Revenue attrition percentage improved to 3% compared to 7% in the prior year, with contractual revenue at 77% compared to 80% in the prior year [28] - The company experienced a negative impact of $0.5 million in Q1 due to the acquisition of a strategic integration customer, which previously contributed $0.6 million per quarter [13][23] Company Strategy and Development Direction - The company is focused on reinvesting strong cash flows into the business to bolster its foundation and execute its product roadmap [10] - A $5 million share repurchase program has been authorized to provide strategic capital allocation options [15] - The company aims to maintain healthy adjusted EBITDA margins while investing in growth, with expectations of margins between 20% to 25% [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on competitive advantages as digital transactions expand [9] - The team is optimistic about the operational leverage of the business model, allowing for investments in growth with minimal impact on profitability [25] - The company is excited about the potential accomplishments in 2022 and beyond, with a strong pipeline and customer-centric solutions [36] Other Important Information - The company added 27 team members in Q1, including 18 in technology, to enhance product delivery and market capabilities [18][19] - Cash used in investing activities was $1.9 million, primarily for software development [35] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the session concluded with a statement on the company's strong performance and competitive advantages [37]

red violet. Company Overview May 2022 © R e d V i o l e t , I n c . A l l R i g h t s R e s e r v e d . Cautionary Statement This presentation 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 include non ...