Red Violet(RDVT) - 2024 Q4 - Annual Report

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]