Post by icemandios on Aug 9, 2022 23:28:12 GMT
red violet Announces Second Quarter 2022 Financial Results
Second Quarter Revenue Increases 15% to $12.5 Million Producing $2.5 Million in Cash Flow from Operations
BOCA RATON, Fla., Aug. 09, 2022 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended June 30, 2022.
“We delivered a solid quarter with revenue of $12.5 million, net loss of $0.2 million and adjusted EBITDA of $2.9 million, notwithstanding the uncertain economic environment,” stated Derek Dubner, red violet’s CEO. “We continued to see strong growth and increasing demand for our identity and fraud solutions across diverse verticals, while experiencing headwinds in our real estate marketing segment due to the cooling housing market. Our business is extremely healthy and well positioned for continued revenue growth and increasing profitability in the back half of the year and beyond, given our innovative solutions, robust product and sales pipelines, strong balance sheet, and healthy free cash flow.”
Second Quarter Financial Results
For the three months ended June 30, 2022 as compared to the three months ended June 30, 2021:
Total revenue increased 15% to $12.5 million. Platform revenue increased 15% to $12.2 million. Services revenue increased 6% to $0.3 million.
Gross profit increased 16% to $8.0 million. Gross margin increased to 64% from 63%.
Adjusted gross profit increased 17% to $9.6 million. Adjusted gross margin increased to 77% from 75%.
Net loss was $0.2 million compared to a net income of $1.8 million (inclusive of a one-time gain of $2.2 million on the extinguishment of debt from the forgiveness of the Cares Act Loan).
Adjusted EBITDA decreased 6% to $2.9 million.
Cash from operating activities increased 10% to $2.5 million.
Cash and cash equivalents were $32.3 million as of June 30, 2022.
Second Quarter and Recent Business Highlights
Added 225 customers to IDI™ during the second quarter, ending the quarter with 6,817 customers.
Surpassed 100,000 users on FOREWARN ® during the second quarter, ending the quarter with 101,261 users. Over 205 REALTOR ® Associations are now contracted to use FOREWARN.
Released idiTRACE™, a premier SSN Trace solution for background screening organizations.
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 (loss) income, the most directly comparable financial measure based on US GAAP, excluding interest expense (income), 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. To listen to the call, please dial (866) 374-5140 for domestic callers or (404) 400-0571 for international callers, using the passcode 87751570#. 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 .
Second Quarter Revenue Increases 15% to $12.5 Million Producing $2.5 Million in Cash Flow from Operations
BOCA RATON, Fla., Aug. 09, 2022 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended June 30, 2022.
“We delivered a solid quarter with revenue of $12.5 million, net loss of $0.2 million and adjusted EBITDA of $2.9 million, notwithstanding the uncertain economic environment,” stated Derek Dubner, red violet’s CEO. “We continued to see strong growth and increasing demand for our identity and fraud solutions across diverse verticals, while experiencing headwinds in our real estate marketing segment due to the cooling housing market. Our business is extremely healthy and well positioned for continued revenue growth and increasing profitability in the back half of the year and beyond, given our innovative solutions, robust product and sales pipelines, strong balance sheet, and healthy free cash flow.”
Second Quarter Financial Results
For the three months ended June 30, 2022 as compared to the three months ended June 30, 2021:
Total revenue increased 15% to $12.5 million. Platform revenue increased 15% to $12.2 million. Services revenue increased 6% to $0.3 million.
Gross profit increased 16% to $8.0 million. Gross margin increased to 64% from 63%.
Adjusted gross profit increased 17% to $9.6 million. Adjusted gross margin increased to 77% from 75%.
Net loss was $0.2 million compared to a net income of $1.8 million (inclusive of a one-time gain of $2.2 million on the extinguishment of debt from the forgiveness of the Cares Act Loan).
Adjusted EBITDA decreased 6% to $2.9 million.
Cash from operating activities increased 10% to $2.5 million.
Cash and cash equivalents were $32.3 million as of June 30, 2022.
Second Quarter and Recent Business Highlights
Added 225 customers to IDI™ during the second quarter, ending the quarter with 6,817 customers.
Surpassed 100,000 users on FOREWARN ® during the second quarter, ending the quarter with 101,261 users. Over 205 REALTOR ® Associations are now contracted to use FOREWARN.
Released idiTRACE™, a premier SSN Trace solution for background screening organizations.
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 (loss) income, the most directly comparable financial measure based on US GAAP, excluding interest expense (income), 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. To listen to the call, please dial (866) 374-5140 for domestic callers or (404) 400-0571 for international callers, using the passcode 87751570#. 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 .