Red Violet(US:RDVT)2025-11-05 21:10Financial Performance - Total revenue increased 21% to $23.1 million compared to the same quarter last year[6] - Net income rose 145% to $4.2 million, resulting in earnings of $0.30 and $0.29 per basic and diluted share, respectively[6] - Adjusted EBITDA increased 35% to $9.0 million, with an adjusted EBITDA margin of 39%[6] - Cash flow from operations increased 40% to $10.2 million[6] - Gross profit increased 26% to $16.8 million, with a gross margin of 73%[6] - Adjusted net income increased 75% to $5.8 million, resulting in adjusted earnings of $0.41 and $0.39 per basic and diluted share, respectively[6] - Net income for the nine months ended September 30, 2025, increased to $10,339,000, up 68% from $6,140,000 in 2024[17] - Adjusted EBITDA for the nine months ended September 30, 2025, was $25,004,000, representing a 30.5% increase from $19,178,000 in 2024[20] - Revenue for the nine months ended September 30, 2025, reached $66,860,000, a 20.2% increase compared to $55,624,000 in 2024[20] - Free cash flow (FCF) for the nine months ended September 30, 2025, was $14,542,000, up 45.4% from $9,999,000 in 2024[22] - Adjusted gross profit for the nine months ended September 30, 2025, was $55,957,000, an increase of 24% from $45,099,000 in 2024[21] - Adjusted earnings per share for the nine months ended September 30, 2025, was $1.07, compared to $0.76 in 2024, reflecting a 40.8% increase[20] - Cash and cash equivalents at the end of the period increased to $45,352,000 from $35,747,000, marking a 26.5% rise[17] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22,660,000, up 31.4% from $17,269,000 in 2024[22] - Adjusted EBITDA margin for the nine months ended September 30, 2025, improved to 37% from 34% in 2024[20] - Gross margin for the nine months ended September 30, 2025, was 72%, up from 69% in 2024[21] Customer Growth - The company added 304 customers to its IDI™ platform, ending the quarter with 9,853 customers[6] - FOREWARN® user base grew by 25,538 users, totaling 372,209 users, with over 590 REALTOR® Associations contracted[6] - IDI billable customers increased from 7,875 in Q4'23 to 9,853 in Q3'25, representing a growth of approximately 25.0%[27] - FOREWARN users grew from 0 in Q4'23 to 372,209 in Q3'25, indicating significant user adoption[27] - Gross revenue retention improved from 92% in Q4'23 to 96% in Q4'24, reflecting enhanced customer retention[27] Operational Metrics - Cash and cash equivalents were $45.4 million as of September 30, 2025[6] - The stock repurchase program was increased by $15.0 million, bringing the total authorized to $30.0 million[6] - Contractual revenue percentage decreased from 82% in Q4'23 to 75% in Q3'25, showing a downward trend[27] Employee Growth - Sales and marketing employees increased from 71 in Q4'23 to 105 in Q3'25, indicating expansion in the sales team[27] - Support staff remained stable at 11 employees from Q3'24 to Q3'25, suggesting consistent support capacity[27] - Engineering employees grew from 51 in Q4'23 to 66 in Q3'25, highlighting investment in technical capabilities[27] - Infrastructure employees increased from 27 in Q4'23 to 32 in Q3'25, indicating growth in operational support[27] - Administration staff remained relatively stable, with a slight decrease from 25 in Q4'23 to 24 in Q1'25[27] Future Plans - The company plans to periodically review and refine the definition and methodology of supplemental metrics, which may lead to material changes[26]