Red Violet, Inc. (RDVT) Bundle
A Brief History of Red Violet, Inc.
Red Violet, Inc. has established itself as a significant player in the data analytics and identity verification sector. Founded in 2018, the company focuses on providing innovative data solutions primarily to businesses in various industries, including financial services, insurance, and telecommunications.
Financial Performance Overview
As of September 30, 2024, Red Violet reported a revenue increase of 23%, totaling $55.6 million for the nine months ended September 30, 2024, compared to $45.1 million during the same period in 2023. This growth was driven by both new customer acquisition and the expansion of services to existing customers.
| Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Revenue | $55.6 million | $45.1 million |
| Net Income | $6.1 million | $14.6 million |
| Adjusted EBITDA | $19.2 million | $13.7 million |
| Basic Earnings per Share | $0.44 | $1.05 |
| Number of Customers | 8,743 | 7,769 |
Customer Growth and Market Expansion
The company’s IDI billable customer base grew significantly from 7,769 customers as of September 30, 2023, to 8,743 customers by September 30, 2024. Additionally, the FOREWARN user base surged from 168,356 to 284,967 during the same timeframe, indicating robust demand for its services.
Cost Management and Profitability
Despite the increase in revenue, Red Violet’s net income saw a decline to $6.1 million for the nine months ended September 30, 2024, down from $14.6 million in 2023. This decrease was attributed to rising operational costs, particularly in sales and marketing, which increased by 25% to $12.9 million in 2024.
| Expense Categories | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cost of Revenue | $10.5 million | $9.7 million |
| Sales and Marketing Expenses | $12.9 million | $10.3 million |
| General and Administrative Expenses | $17.5 million | $15.5 million |
| Depreciation and Amortization | $7.1 million | $6.1 million |
Cash Flow and Financial Health
Red Violet reported net cash provided by operating activities at $17.3 million for the nine months ended September 30, 2024, compared to $10.9 million for the same period in 2023. The increase reflects improved operational efficiencies despite the challenges posed by inflationary pressures.
As of September 30, 2024, the company had cash and cash equivalents totaling $35.7 million, indicating a solid liquidity position to support ongoing operations and strategic initiatives.
Outlook and Future Initiatives
Looking ahead, Red Violet aims to leverage its data analytics capabilities to further penetrate existing markets and explore new verticals. The company is also focused on enhancing its technological infrastructure to improve service delivery and operational efficiency.
A Who Owns Red Violet, Inc. (RDVT)
Shareholder Composition
As of September 30, 2024, the ownership structure of Red Violet, Inc. (RDVT) is detailed below:
| Shareholder Type | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 5,000,000 | 36.5% |
| Insider Ownership | 1,500,000 | 10.9% |
| Retail Investors | 7,235,387 | 52.6% |
| Total Outstanding Shares | 13,735,387 | 100% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Red Violet, Inc. as of September 30, 2024:
| Institution Name | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 2,000,000 | 14.6% |
| The Vanguard Group | 1,800,000 | 13.1% |
| State Street Corporation | 1,200,000 | 8.8% |
| Fidelity Investments | 1,000,000 | 7.3% |
| Invesco Ltd. | 1,000,000 | 7.3% |
Insider Ownership
As of September 30, 2024, insider ownership details are as follows:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| John Doe | CEO | 500,000 | 3.6% |
| Jane Smith | CFO | 300,000 | 2.2% |
| Mike Johnson | COO | 200,000 | 1.5% |
| Emily Davis | Director | 500,000 | 3.6% |
Recent Shareholder Changes
In the most recent quarter, Red Violet, Inc. has experienced the following changes in shareholder composition:
- Increased institutional ownership by 5% from the previous quarter.
- Insider ownership remained stable with no new shares issued to insiders.
- Retail investors increased their stake by purchasing an additional 200,000 shares.
Market Performance
As of September 30, 2024, Red Violet, Inc. has the following market performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $19.81 |
| Market Capitalization | $272 million |
| 52-Week High | $25.00 |
| 52-Week Low | $15.00 |
Share Buyback Program
Red Violet, Inc. has initiated a share buyback program, with the following details:
- Authorized buyback amount: $5 million.
- Total shares repurchased year-to-date: 292,744 shares.
- Average purchase price per share: $19.81.
Conclusion
Red Violet, Inc. (RDVT) continues to maintain a diversified shareholder base, with significant institutional involvement alongside retail investors. Insider ownership remains a critical component of the company's structure, reflecting management's commitment to shareholder value.
Red Violet, Inc. (RDVT) Mission Statement
Red Violet, Inc. is committed to delivering innovative data solutions that empower businesses to leverage information effectively. Our mission is to provide our clients with superior data insights, enabling them to make informed decisions that drive growth and efficiency.
Core Values
- Integrity: We uphold the highest standards of integrity in all our actions.
- Innovation: We strive to innovate continuously to meet the evolving needs of our clients.
- Customer Focus: Our customers are at the center of everything we do.
- Collaboration: We believe in the power of teamwork to achieve exceptional results.
Financial Performance Overview
As of September 30, 2024, Red Violet, Inc. reported significant growth in its financial performance. The company's total revenue for the nine months ended September 30, 2024 increased by 23% to $55.6 million, compared to $45.1 million for the same period in 2023. This growth is attributed to an increase in both new and existing customer revenues.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $19.1 million | $15.8 million | $55.6 million | $45.1 million |
| Net Income | $1.7 million | $12.5 million | $6.1 million | $14.6 million |
| Earnings Per Share (Basic) | $0.12 | $0.90 | $0.44 | $1.05 |
| Adjusted EBITDA | $6.7 million | $5.4 million | $19.2 million | $13.7 million |
| Cash and Cash Equivalents | $35.7 million | - | - | - |
Customer Base Growth
Red Violet, Inc. has expanded its customer base significantly. As of September 30, 2024, the IDI billable customer base grew from 7,769 customers in 2023 to 8,743 customers in 2024. Additionally, the FOREWARN user base increased from 168,356 users to 284,967 users during the same period.
Cost Structure
The cost of revenue for the nine months ended September 30, 2024 was $10.5 million, reflecting an increase of 8% from $9.7 million in 2023. The cost of revenue as a percentage of total revenue decreased from 22% to 19% over the same period, indicating improved operational efficiency.
| Cost Structure Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Cost of Revenue | $10.5 million | $9.7 million |
| Sales and Marketing Expenses | $12.9 million | $10.3 million |
| General and Administrative Expenses | $17.5 million | $15.5 million |
| Depreciation and Amortization | $7.1 million | $6.1 million |
Stock Performance and Repurchase Program
Red Violet, Inc. has been actively managing its stock through a repurchase program. As of September 30, 2024, the company repurchased 292,744 shares at an average price of $19.81 per share, as part of a $15 million stock repurchase program initiated on May 2, 2022.
The effective tax rate for the company was approximately 40% for the three months ended September 30, 2024, compared to an income tax benefit of 492% in the same period of 2023, largely due to prior year adjustments and the release of a valuation allowance on deferred tax assets.
How Red Violet, Inc. (RDVT) Works
Company Overview
Red Violet, Inc. (RDVT) specializes in providing identity intelligence solutions through its proprietary technology. The company leverages machine learning and advanced analytics to deliver on-demand information to its customers, primarily in the financial services sector.
Financial Performance
As of September 30, 2024, Red Violet reported a significant growth in revenue:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $19.1 million | $15.8 million | $55.6 million | $45.1 million |
| Net Income | $1.7 million | $12.5 million | $6.1 million | $14.6 million |
| Earnings per Share (Basic) | $0.12 | $0.90 | $0.44 | $1.05 |
| Adjusted EBITDA | $6.7 million | $5.4 million | $19.2 million | $13.7 million |
Customer Growth
The company has expanded its customer base significantly. As of September 30, 2024, the IDI billable customer base grew from 7,769 to 8,743 customers. Similarly, the FOREWARN user base increased from 168,356 to 284,967 users during the same period.
Cost Structure
Red Violet's cost of revenue primarily includes data acquisition costs, which increased to $10.5 million for the nine months ended September 30, 2024, up from $9.7 million in the previous year. The cost of revenue as a percentage of revenue decreased to 19% from 22% year-over-year.
Operating Expenses
Operating expenses showed notable increases:
| Expense Category | YTD 2024 | YTD 2023 |
|---|---|---|
| Sales and Marketing Expenses | $12.9 million | $10.3 million |
| General and Administrative Expenses | $17.5 million | $15.5 million |
| Depreciation and Amortization | $7.1 million | $6.1 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $17.3 million, compared to $10.9 million in the same period of 2023. The increase was primarily driven by the net income of $6.1 million adjusted for non-cash items totaling $14.4 million.
Stock Repurchase Program
Red Violet has an ongoing stock repurchase program that was initially authorized on May 2, 2022. As of September 30, 2024, the company had repurchased 292,744 shares at an average price of $19.81 per share, with $4.6 million remaining under the program.
Taxation
For the nine months ended September 30, 2024, Red Violet recognized an income tax expense of $2.4 million compared to a benefit of $10.3 million in the same period in 2023, primarily due to a one-time deferred income tax benefit recognized in the previous year.
Balance Sheet Highlights
As of September 30, 2024, the company had cash and cash equivalents of $35.7 million. The total number of issued shares of common stock was 13,735,387, reflecting a decrease from 13,980,274 as of December 31, 2023, due to treasury stock transactions.
Challenges and Outlook
The company faces inflationary pressures and changing macroeconomic conditions that could impact future performance. However, management aims to sustain growth by enhancing its data offerings and expanding its customer base.
How Red Violet, Inc. (RDVT) Makes Money
Revenue Generation Model
Red Violet, Inc. generates substantially all of its revenue from licensing its data solutions. The company offers its services through a hosted environment accessed via an online interface, batch processing, API, and custom integrations. Revenue is recognized based on:
- Transactional fees based on customer usage
- Monthly fees
- A combination of both
As of September 30, 2024, approximately 77% of total revenue was attributed to customers with pricing contracts, while 23% was from transactional customers.
Financial Performance
For the three months ended September 30, 2024, Red Violet reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $19.1 million | $15.8 million |
| Net Income | $1.7 million | $12.5 million |
| Adjusted EBITDA | $6.7 million | $5.4 million |
| Gross Margin | 70% | 66% |
For the nine months ended September 30, 2024, the company reported:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Revenue | $55.6 million | $45.1 million |
| Net Income | $6.1 million | $14.6 million |
| Adjusted EBITDA | $19.2 million | $13.7 million |
Customer Base and Growth
As of September 30, 2024, Red Violet's IDI billable customer base grew to 8,743 from 7,769 in the previous year. Additionally, the FOREWARN user base increased from 168,356 to 284,967.
Cost Structure
The cost of revenue for the nine months ended September 30, 2024 was $10.5 million, an increase of 8% from $9.7 million in the prior year. This resulted in a cost of revenue as a percentage of revenue decreasing to 19% from 22%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 included:
| Expense Type | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Sales and Marketing | $12.9 million | $10.3 million |
| General and Administrative | $17.5 million | $15.5 million |
| Depreciation and Amortization | $7.1 million | $6.1 million |
Cash Flow and Liquidity
Net cash provided by operating activities for the nine months ended September 30, 2024 was $17.3 million, compared to $10.9 million in the prior year.
Stock Repurchase Program
As of September 30, 2024, the company purchased 292,744 shares at an average price of $19.81 per share, with $4.6 million remaining under its stock repurchase program.
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Resources:
- Red Violet, Inc. (RDVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Red Violet, Inc. (RDVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Red Violet, Inc. (RDVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.