Red Violet(RDVT) - 2022 Q1 - Quarterly Report

Financial Performance - Total revenue increased 25% to $12.7 million, with platform revenue rising 24% to $12.2 million and services revenue increasing 27% to $0.5 million[75]. - Gross profit increased 29% to $8.1 million, resulting in a gross margin increase to 64% from 61%[75]. - Adjusted gross profit rose 28% to $9.6 million, with adjusted gross margin increasing to 75% from 73%[75]. - Net income was $0.1 million compared to a loss of $0.6 million in the previous year[75]. - Adjusted EBITDA increased 12% to $3.2 million, with an adjusted EBITDA margin of 25%[77]. - Revenue increased by $2.5 million or 25% to $12.7 million for the three months ended March 31, 2022, compared to $10.2 million for the same period in 2021[80]. Customer Growth - IDI™ added 44 customers during the first quarter, ending with 6,592 customers, while FOREWARN® added 9,071 users, totaling 91,490 users[75]. - The IDI billable customer base grew from 5,902 customers as of March 31, 2021, to 6,592 customers as of March 31, 2022, while the FOREWARN user base increased from 58,831 to 91,490[80]. Cash Flow and Liquidity - Cash from operating activities increased 97% to $2.4 million, with cash and cash equivalents at $34.8 million as of March 31, 2022[75]. - Cash flows provided by operating activities were $2.4 million for the three months ended March 31, 2022, compared to $1.2 million for the same period in 2021[89]. - As of March 31, 2022, the company had cash and cash equivalents of approximately $34.8 million[92]. - The company anticipates funding its operations using available cash and cash flow generated from operations within the next twelve months[90]. Expenses - Cost of revenue increased by $0.4 million or 15% to $3.2 million for the three months ended March 31, 2022, compared to $2.8 million for the same period in 2021[81]. - Cost of revenue as a percentage of revenue decreased to 25% for the three months ended March 31, 2022, down from 27% for the same period in 2021[82]. - Sales and marketing expenses increased by $0.2 million or 8% to $2.4 million for the three months ended March 31, 2022, compared to $2.2 million for the same period in 2021[83]. - General and administrative expenses increased by $0.8 million or 18% to $5.4 million for the three months ended March 31, 2022, compared to $4.6 million for the same period in 2021[84]. Future Expectations - The company expects idiVERIFIED service volume to return to pre-Covid levels in the first half of 2023[69]. - 77% of total revenue for the three months ended March 31, 2022, was attributable to customers with pricing contracts[66]. - Released idiCORE™ Mobile, an app-based solution for investigative, due-diligence, and fraud prevention needs[75].