Post by icemandios on Mar 11, 2021 3:53:24 GMT
red violet Announces Fourth Quarter and Full Year 2020 Financial Results
Strong Finish to the Year Produces Record $1.8 Million in Positive Cash Flow from Operations in the Fourth Quarter
Full Year 2020 Revenue up 14% to $34.6 Million
BOCA RATON, Fla., March 10, 2021 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter and full year ended December 31, 2020.
“red violet delivered a solid quarter, concluding a year in which we performed better in all key financial metrics compared to 2019 despite pandemic impacts,” stated Derek Dubner, red violet’s CEO. “We saw rapid expansion in our profitability driven by increasing platform revenue, demonstrating our ability to drive highly profitable growth during a time of economic uncertainty. While the fourth quarter is historically a seasonally slower quarter for our business, I am extremely pleased with our performance, and 2021 is off to a great start with the first quarter pacing towards record revenue and adjusted EBITDA. As economic conditions improve, we are confident our innovative technology and customer-centric solutions are well positioned to continue to drive strong growth in 2021 and beyond.”
Fourth Quarter Financial Results
For the three months ended December 31, 2020 as compared to the three months ended December 31, 2019:
Total revenue decreased 1% to $9.0 million. Platform revenue increased 12% to $8.6 million.
Services revenue decreased 74% to $0.4 million.
Net loss narrowed 61% to $1.9 million.
Adjusted EBITDA increased 49% to $1.2 million.
Gross profit increased 5% to $5.1 million. Gross margin increased to 57% from 54%.
Adjusted gross profit increased 11% to $6.3 million. Adjusted gross margin increased to 70% from 62%.
Generated $1.8 million in cash from operating activities in the fourth quarter.
Cash and cash equivalents were $13.0 million as of December 31, 2020.
Full Year Financial Results
For the year ended December 31, 2020 as compared to the year ended December 31, 2019:
Total revenue increased 14% to $34.6 million. Platform revenue increased 26% to $32.5 million.
Services revenue decreased 54% to $2.0 million.
Net loss narrowed 38% to $6.8 million.
Adjusted EBITDA increased 213% to $5.9 million.
Gross profit increased 26% to $19.3 million. Gross margin increased to 56% from 51%.
Adjusted gross profit increased 29% to $23.3 million. Adjusted gross margin increased to 67% from 60%.
Generated $6.5 million in cash from operating activities in 2020.
Fourth Quarter and Recent Business Highlights
Despite pandemic headwinds, strong growth in our high-margin platform revenue allowed us to generate over 90% contribution of total incremental revenue to adjusted EBITDA, with a $4.3 million increase in total revenue in 2020 generating a $4.0 million increase in adjusted EBITDA.
idiCORE™ ended the fourth quarter 2020 with 5,726 customers, a 13% increase from the fourth quarter 2019.
FOREWARN ® ended the fourth quarter 2020 with 48,377 users, a 58% increase from the fourth quarter of 2019.
Added 12 product development and infrastructure members to the technology team to address growth opportunities.
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 gross profit and adjusted gross margin. Adjusted EBITDA is a financial measure equal to net loss, the most directly comparable financial measure based on US GAAP, excluding interest expense (income), net, depreciation and amortization, share-based compensation expense, write-off of long-lived assets and others, and sales and use tax expense. 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. To listen to the call, please dial (877) 665-6635 for domestic callers or (602) 563-8608 for international callers, using the passcode 6558028. 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, a replay will be available for approximately one week by dialing (855) 859-2056 or (404) 537-3406 with the replay passcode 6558028. 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 .
Strong Finish to the Year Produces Record $1.8 Million in Positive Cash Flow from Operations in the Fourth Quarter
Full Year 2020 Revenue up 14% to $34.6 Million
BOCA RATON, Fla., March 10, 2021 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter and full year ended December 31, 2020.
“red violet delivered a solid quarter, concluding a year in which we performed better in all key financial metrics compared to 2019 despite pandemic impacts,” stated Derek Dubner, red violet’s CEO. “We saw rapid expansion in our profitability driven by increasing platform revenue, demonstrating our ability to drive highly profitable growth during a time of economic uncertainty. While the fourth quarter is historically a seasonally slower quarter for our business, I am extremely pleased with our performance, and 2021 is off to a great start with the first quarter pacing towards record revenue and adjusted EBITDA. As economic conditions improve, we are confident our innovative technology and customer-centric solutions are well positioned to continue to drive strong growth in 2021 and beyond.”
Fourth Quarter Financial Results
For the three months ended December 31, 2020 as compared to the three months ended December 31, 2019:
Total revenue decreased 1% to $9.0 million. Platform revenue increased 12% to $8.6 million.
Services revenue decreased 74% to $0.4 million.
Net loss narrowed 61% to $1.9 million.
Adjusted EBITDA increased 49% to $1.2 million.
Gross profit increased 5% to $5.1 million. Gross margin increased to 57% from 54%.
Adjusted gross profit increased 11% to $6.3 million. Adjusted gross margin increased to 70% from 62%.
Generated $1.8 million in cash from operating activities in the fourth quarter.
Cash and cash equivalents were $13.0 million as of December 31, 2020.
Full Year Financial Results
For the year ended December 31, 2020 as compared to the year ended December 31, 2019:
Total revenue increased 14% to $34.6 million. Platform revenue increased 26% to $32.5 million.
Services revenue decreased 54% to $2.0 million.
Net loss narrowed 38% to $6.8 million.
Adjusted EBITDA increased 213% to $5.9 million.
Gross profit increased 26% to $19.3 million. Gross margin increased to 56% from 51%.
Adjusted gross profit increased 29% to $23.3 million. Adjusted gross margin increased to 67% from 60%.
Generated $6.5 million in cash from operating activities in 2020.
Fourth Quarter and Recent Business Highlights
Despite pandemic headwinds, strong growth in our high-margin platform revenue allowed us to generate over 90% contribution of total incremental revenue to adjusted EBITDA, with a $4.3 million increase in total revenue in 2020 generating a $4.0 million increase in adjusted EBITDA.
idiCORE™ ended the fourth quarter 2020 with 5,726 customers, a 13% increase from the fourth quarter 2019.
FOREWARN ® ended the fourth quarter 2020 with 48,377 users, a 58% increase from the fourth quarter of 2019.
Added 12 product development and infrastructure members to the technology team to address growth opportunities.
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 gross profit and adjusted gross margin. Adjusted EBITDA is a financial measure equal to net loss, the most directly comparable financial measure based on US GAAP, excluding interest expense (income), net, depreciation and amortization, share-based compensation expense, write-off of long-lived assets and others, and sales and use tax expense. 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. To listen to the call, please dial (877) 665-6635 for domestic callers or (602) 563-8608 for international callers, using the passcode 6558028. 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, a replay will be available for approximately one week by dialing (855) 859-2056 or (404) 537-3406 with the replay passcode 6558028. 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 .