Post by icemandios on Nov 9, 2022 14:00:07 GMT
red violet Announces Third Quarter 2022 Financial Results
Record Revenue of $15.0 Million Drives Record Earnings of $0.16 Per Share
BOCA RATON, Fla., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended September 30, 2022.
“We had a strong quarter, setting records for nearly every key financial metric,” stated Derek Dubner, red violet’s CEO. “Revenue increased 29% to a record $15.0 million, net income increased 80% to a record $2.3 million, earnings increased 78% to a record $0.16 per diluted share and adjusted EBITDA increased 43% to a record $5.2 million. Despite the challenging economic environment, we continue to see strong demand for our innovative identity solutions and pipeline expansion from larger enterprise and public sector prospects. As we continue to add talent to our sales, product and technology teams, we are focused on providing best-in-class, customer-centric solutions and driving strong revenue growth.”
Third Quarter Financial Results
For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021:
Total revenue increased 29% to $15.0 million. Platform revenue increased 31% to $14.8 million.
Services revenue decreased 29% to $0.2 million.
Gross profit increased 36% to $10.3 million. Gross margin increased to 69% from 65%.
Adjusted gross profit increased 35% to $12.0 million. Adjusted gross margin increased to 80% from 76%.
Net income increased 80% to $2.3 million, which resulted in $0.16 per basic and diluted share.
Adjusted EBITDA increased 43% to $5.2 million.
Cash from operating activities decreased 9% to $3.1 million.
Cash and cash equivalents were $31.3 million as of September 30, 2022.
Third Quarter and Recent Business Highlights
Added 56 customers to IDI™ during the third quarter, ending the quarter with 6,873 customers.
Added 8,790 users to FOREWARN ® during the third quarter, ending the quarter with 110,051 users.
Over 225 REALTOR ® Associations are now contracted to use FOREWARN.
Continue to enhance our go-to-market capabilities with the expansion of our sales team, including key new hires focused on several strategic areas within fraud and identity where we are seeing strong traction.
To date, we have purchased a total of 50,000 shares of the Company’s common stock at an average price of $17.52 per share pursuant to the Company’s Stock Repurchase Program authorized by the board of directors on May 4, 2022.
Use of Non-GAAP Financial Measures
Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit and adjusted gross margin. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest (income) expense, net, income tax expense, depreciation and amortization, share-based compensation expense, gain on extinguishment of debt, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue.
Conference Call
In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com . Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com .
About red violet ®
At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our intelligent platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society. For more information, please visit www.redviolet.com .
Record Revenue of $15.0 Million Drives Record Earnings of $0.16 Per Share
BOCA RATON, Fla., Nov. 07, 2022 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended September 30, 2022.
“We had a strong quarter, setting records for nearly every key financial metric,” stated Derek Dubner, red violet’s CEO. “Revenue increased 29% to a record $15.0 million, net income increased 80% to a record $2.3 million, earnings increased 78% to a record $0.16 per diluted share and adjusted EBITDA increased 43% to a record $5.2 million. Despite the challenging economic environment, we continue to see strong demand for our innovative identity solutions and pipeline expansion from larger enterprise and public sector prospects. As we continue to add talent to our sales, product and technology teams, we are focused on providing best-in-class, customer-centric solutions and driving strong revenue growth.”
Third Quarter Financial Results
For the three months ended September 30, 2022 as compared to the three months ended September 30, 2021:
Total revenue increased 29% to $15.0 million. Platform revenue increased 31% to $14.8 million.
Services revenue decreased 29% to $0.2 million.
Gross profit increased 36% to $10.3 million. Gross margin increased to 69% from 65%.
Adjusted gross profit increased 35% to $12.0 million. Adjusted gross margin increased to 80% from 76%.
Net income increased 80% to $2.3 million, which resulted in $0.16 per basic and diluted share.
Adjusted EBITDA increased 43% to $5.2 million.
Cash from operating activities decreased 9% to $3.1 million.
Cash and cash equivalents were $31.3 million as of September 30, 2022.
Third Quarter and Recent Business Highlights
Added 56 customers to IDI™ during the third quarter, ending the quarter with 6,873 customers.
Added 8,790 users to FOREWARN ® during the third quarter, ending the quarter with 110,051 users.
Over 225 REALTOR ® Associations are now contracted to use FOREWARN.
Continue to enhance our go-to-market capabilities with the expansion of our sales team, including key new hires focused on several strategic areas within fraud and identity where we are seeing strong traction.
To date, we have purchased a total of 50,000 shares of the Company’s common stock at an average price of $17.52 per share pursuant to the Company’s Stock Repurchase Program authorized by the board of directors on May 4, 2022.
Use of Non-GAAP Financial Measures
Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit and adjusted gross margin. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest (income) expense, net, income tax expense, depreciation and amortization, share-based compensation expense, gain on extinguishment of debt, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue.
Conference Call
In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com . Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com .
About red violet ®
At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our intelligent platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society. For more information, please visit www.redviolet.com .