Red Violet(RDVT) - 2022 Q4 - Annual Report

Financial Performance - For the years ended December 31, 2022 and 2021, revenue increased to $53.3 million from $44.0 million, representing a growth of 21.6%[21] - Net income for the same periods was $0.6 million in 2022 compared to $0.7 million in 2021, showing a decrease of 14.3%[21] - Adjusted EBITDA rose to $12.9 million in 2022 from $10.9 million in 2021, reflecting an increase of 18.4%[21] Market Trends - The global data and business analytics services market was valued at $215.7 billion in 2021, with a projected CAGR of 12.8% from 2021 to 2025[23] - The risk analytics market is expected to grow to $70.5 billion by 2027, with a CAGR of 12.4% from 2022 to 2027[24] Customer and Supplier Dynamics - The company’s largest data supplier accounted for 49% of total data acquisition costs for the years ended December 31, 2022 and 2021[40] - As of December 31, 2022, one individual customer accounted for 11% of accounts receivable, net[39] Product Development and Technology - The company aims to enhance functionality and develop new products to better serve customer needs and expand applications[34] - The company’s cloud-native platform allows for the assimilation and structuring of billions of disparate records, providing real-time identity intelligence[31] - The company is committed to investing in technology and people to maintain a competitive edge in the rapidly evolving data and analytics sector[34] - The company has overseen the expansion of its proprietary technology platform while transitioning from a development-focused to a sales-driven company[45] Workforce and Management - The company employs a total of 186 full-time employees and one part-time employee as of December 31, 2022[46] - The management team has a strong track record and significant 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 recruiting sector[46] - The company has not experienced any work stoppages and considers its relations with employees to be good[46] - The executive team includes Derek Dubner as CEO, James Reilly as President, Daniel MacLachlan as CFO, and Jeff Dell as CIO, all with extensive experience in the industry[49][50][51][52][53] Corporate Structure - The company spun off its risk management business on March 26, 2018, distributing shares of its subsidiary to stockholders[47] - The company’s principal executive offices are located in Boca Raton, Florida[48] - The company is classified as a smaller reporting company and is not required to include certain market risk disclosures[194]