Red Violet(RDVT) - 2024 Q2 - Quarterly Report

Revenue Growth - Total revenue increased 30% to $19.1 million for the three months ended June 30, 2024, compared to the same period in 2023[58]. - Revenue increased by$ 4.4 million or 30% to $19.1 million for the three months ended June 30, 2024, compared to$ 14.7 million for the same period in 2023[69]. - Revenue increased by $7.3 million or 25% to$ 36.6 million for the six months ended June 30, 2024, compared to $29.3 million for the same period in 2023[75]. Profitability - Gross profit increased 41% to$ 13.3 million, with gross margin rising to 70% from 64%[58]. - Adjusted gross profit increased 36% to $15.6 million, with adjusted gross margin rising to 82% from 78%[59]. - Net income surged 90% to$ 2.6 million, resulting in earnings of $0.19 per basic and diluted share, with net income margin increasing to 14% from 9%[59]. - Adjusted net income for the three months ended June 30, 2024, was$ 3.9 million, compared to $2.9 million for the same period in 2023, representing a 33% increase[64]. - Net income for the six months ended June 30, 2024, was$ 4.4 million, up from $2.1 million for the same period in 2023[81]. Customer Growth - IDI added 236 customers during the second quarter, ending with a total of 8,477 customers[60]. - The IDI billable customer base grew from 7,497 customers as of June 30, 2023, to 8,477 customers as of June 30, 2024[69]. - FOREWARN added 27,237 users, bringing the total to 263,876 users, with over 490 REALTOR® Associations contracted to use the service[60]. - FOREWARN user base increased from 146,537 users to 263,876 users during the same period[69]. Cash Flow - Cash and cash equivalents were$ 30.9 million as of June 30, 2024[59]. - Net cash provided by operating activities increased 61% to $5.7 million[59]. - Net cash provided by operating activities was$ 10.0 million for the six months ended June 30, 2024, compared to $5.1 million for the same period in 2023[83]. - Free cash flow (FCF) for the three months ended June 30, 2024, was$ 3.3 million, compared to $1.3 million for the same period in 2023, indicating a significant increase[66]. Expenses - Sales and marketing expenses increased by$ 1.3 million or 43% to $4.4 million for the three months ended June 30, 2024, primarily due to increased salaries and benefits[72]. - General and administrative expenses rose by$ 0.7 million or 13% to $5.8 million for the three months ended June 30, 2024, driven by higher employee salaries and professional fees[73]. - Sales and marketing expenses rose by$ 1.1 million or 17% to $8.1 million for the six months ended June 30, 2024[78]. - General and administrative expenses increased by$ 1.2 million or 12% to $11.5 million for the six months ended June 30, 2024[79]. Cost of Revenue - Cost of revenue as a percentage of revenue decreased to 18% for the three months ended June 30, 2024, down from 22% for the same period in 2023[71]. - Cost of revenue increased by$ 0.8 million or 12% to $7.2 million for the six months ended June 30, 2024[76]. - Cost of revenue as a percentage of revenue decreased to 20% for the six months ended June 30, 2024, from 22% for the same period in 2023[77].