Red Violet(US:RDVT)2020-05-12 01:43Financial Data and Key Metrics Changes - The company reported record revenue of $9.3 million for Q1 2020, a 62% increase compared to Q1 2019 [10][41] - Adjusted gross profit increased by 96% to $6 million, with adjusted gross margin rising to 65% from 53% [10][41] - Adjusted EBITDA was $1.7 million, compared to a negative $0.4 million in Q1 2019 [11][41] - Net loss for the quarter was $1.5 million, slightly higher than the $1.4 million loss in Q1 2019 [47] Business Line Data and Key Metrics Changes - Base revenue from existing customers grew by $3 million or 84%, while growth revenue from existing customers increased by $0.4 million or 46% [10][41] - The company added over 260 new customers to idiCORE and over 5,900 users to FOREWARN during the quarter [11][42] - Revenue attributable to customer contracts reached 69%, marking the highest percentage in the company's history [22][43] Market Data and Key Metrics Changes - The company experienced reduced transactional volume in the second half of March due to the COVID-19 pandemic [11][41] - Customers in the collections vertical paused or diminished activity due to concerns about predatory behavior and government moratoria [19] - In the real estate vertical, some customers postponed marketing efforts in anticipation of a decline in housing activity [21] Company Strategy and Development Direction - The company is committed to maintaining durable relationships with existing customers and strategically capturing market share during the transitional period [33] - The business model is described as durable and proven, with a strong focus on identity verification and fraud detection solutions during economic crises [25][28] - The company plans to continue expanding its business, entering new industries, and introducing new products and solutions [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the economic challenges posed by the pandemic and expects accelerated growth as the economy reopens [39][55] - The company has implemented cost containment strategies and has not furloughed or laid off any employees during the crisis [54] - Management anticipates that demand from affected customers will revert back to pre-crisis levels and potentially exceed them due to pent-up demand [23] Other Important Information - The company received a $2.2 million loan under the CARES Act, which may be forgiven if used for covered payroll costs, rents, and utility costs [53][55] - Cash and cash equivalents were $11.5 million at the end of Q1 2020, down slightly from $11.8 million at the end of 2019 [49] Q&A Session Summary Question: Are there any questions from participants? - There were no questions during the Q&A session [57]