Red Violet(RDVT) - 2018 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2018, the company reported revenue of $16.3 million, a significant increase from $8.6 million in 2017, while net loss improved to $6.9 million from $21.5 million[18]. - The adjusted EBITDA for 2018 was negative $4.3 million, an improvement from negative $8.3 million in 2017[18]. Market Trends - The risk analytics software market is projected to grow to $35.9 billion by 2022, representing a CAGR of 15.3% from 2017 through 2022[21]. - The worldwide revenue for big data and business analytics services is expected to reach $260.0 billion in 2022, with a CAGR of 11.9% from 2017 through 2022[20]. Customer and Revenue Concentration - One customer accounted for 11% of total revenue in 2018, while no individual customer accounted for more than 10% of total revenue in 2017[40]. - The largest data supplier accounted for approximately 46% of total data acquisition costs in 2018, up from 43% in 2017[42]. Strategic Focus - The company aims to focus on continuous advancement of technology and data to enhance cross-selling and upselling opportunities[33]. - The company is committed to selective acquisitions to enhance shareholder value and advance strategic objectives[34]. - The company leverages its CORE platform to build massive proprietary datasets and apply analytics in real-time for actionable insights[26]. Competitive Landscape - The competitive landscape is characterized by constant change, with competition based on innovation, product stability, pricing, and customer service[35]. Workforce and Management - The company employs 95 full-time and 2 part-time employees as of December 31, 2018, with no labor organization representation[48]. - The management team has significant expertise in the big data and analytics sector, overseeing the transition from a development-focused to a sales-driven company[47]. - The executive team includes Derek Dubner as CEO, James Reilly as President, Daniel MacLachlan as CFO, and Jeff Dell as CIO, all with extensive industry experience[50][51][52][53][54]. Regulatory and Seasonal Factors - The company is subject to various federal, state, and local laws that could materially impact its information services and profitability[45]. - Seasonal fluctuations affect the company's results, particularly during the fourth quarter[46].