Red Violet(US:RDVT)2022-11-08 00:29Financial Data and Key Metrics Changes - Total revenue reached a record $15 million, representing a 29% increase year-over-year [8][15] - Adjusted gross profit was a record $12 million, resulting in an adjusted gross margin of 80%, up four percentage points from the previous year [8][15] - Adjusted EBITDA for the quarter was a record $5.2 million, up 43% from the prior year, with an adjusted EBITDA margin of 35% compared to 31% in the prior year [8][15] - Net income was a record $2.3 million, an 80% increase year-over-year, leading to earnings of $0.16 per diluted share [9][20] Business Line Data and Key Metrics Changes - Platform revenue increased by 31% to $14.8 million, while services revenue decreased by 29% to $0.2 million [15] - The IDI billable customer base grew by 56 customers sequentially, ending the quarter at 6,873 customers [17] - FOREWARN added 8,790 users during the quarter, ending with 110,051 users, with over 225 realtor associations contracted [9][17] Market Data and Key Metrics Changes - Revenue from the real estate marketing segment remained relatively flat due to a spike in mortgage rates and housing market volatility [10] - Collections revenue was flat, with expectations for future growth as consumer financial health deteriorates [11] Company Strategy and Development Direction - The company is focused on expanding its sales and product teams to capitalize on opportunities and drive its product roadmap [8][12] - There is a commitment to invest in strategic areas where strong traction is observed, including identity, property solutions, and financial services [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing sales pipeline and the ability to win against larger competitors [8][9] - The company remains flexible in its operations to adapt to the dynamic economic environment [11] - There is an expectation for collections activity to pick up in the near future, leading to revenue growth from that vertical [11] Other Important Information - Cash and cash equivalents were $31.3 million at the end of the quarter, down from $34.3 million at the end of the previous year [21] - The company generated $2.9 million in free cash flow for the quarter, an increase from $2.4 million in the same period last year [21] Q&A Session Summary - Management reiterated the strong performance in a challenging economic environment and expressed excitement about the growing pipeline and product roadmap [27]