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Red Violet(RDVT) - 2022 Q1 - Earnings Call Transcript
RDVTRed Violet(RDVT)2022-05-07 17:01
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Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was 12.7million,a2512.7 million, a 25% increase year-over-year, marking the highest quarterly revenue ever [12][20] - Adjusted gross profit reached a record 9.6 million, resulting in a margin of 75%, up 2 percentage points from the previous year [12][29] - Adjusted EBITDA for the quarter was 3.2million,a123.2 million, a 12% increase over the prior year, with an adjusted EBITDA margin of 25% compared to 28% in the prior year [12][20][25] - Net income for the quarter was 0.1 million, compared to a loss of 0.6millionintheprioryear[32][33]−Cashandcashequivalentswere0.6 million in the prior year [32][33] - Cash and cash equivalents were 34.8 million at March 31, 2022, compared to 34.3millionatDecember31,2021[34]BusinessLineDataandKeyMetricsChanges−Platformrevenueincreased2434.3 million at December 31, 2021 [34] Business Line Data and Key Metrics Changes - Platform revenue increased 24% to a record 12.2 million, while services revenue was up 27% to 0.5million[12][20]−TheIDIbillablecustomerbasegrewby44customerssequentially,endingthequarterat6,592customers[14][26]−FOREWARNadded9,071usersduringthefirstquarter,endingwith91,490users,withover200realtorassociationscontractedtousetheservice[14][26]MarketDataandKeyMetricsChanges−Revenueattritionpercentageimprovedto30.5 million [12][20] - The IDI billable customer base grew by 44 customers sequentially, ending the quarter at 6,592 customers [14][26] - FOREWARN added 9,071 users during the first quarter, ending with 91,490 users, with over 200 realtor associations contracted to use the service [14][26] Market Data and Key Metrics Changes - Revenue attrition percentage improved to 3% compared to 7% in the prior year, with contractual revenue at 77% compared to 80% in the prior year [28] - The company experienced a negative impact of 0.5 million in Q1 due to the acquisition of a strategic integration customer, which previously contributed 0.6millionperquarter[13][23]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonreinvestingstrongcashflowsintothebusinesstobolsteritsfoundationandexecuteitsproductroadmap[10]−A0.6 million per quarter [13][23] Company Strategy and Development Direction - The company is focused on reinvesting strong cash flows into the business to bolster its foundation and execute its product roadmap [10] - A 5 million share repurchase program has been authorized to provide strategic capital allocation options [15] - The company aims to maintain healthy adjusted EBITDA margins while investing in growth, with expectations of margins between 20% to 25% [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on competitive advantages as digital transactions expand [9] - The team is optimistic about the operational leverage of the business model, allowing for investments in growth with minimal impact on profitability [25] - The company is excited about the potential accomplishments in 2022 and beyond, with a strong pipeline and customer-centric solutions [36] Other Important Information - The company added 27 team members in Q1, including 18 in technology, to enhance product delivery and market capabilities [18][19] - Cash used in investing activities was $1.9 million, primarily for software development [35] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the session concluded with a statement on the company's strong performance and competitive advantages [37]