red violet Announces First Quarter 2018 Financial Results
BOCA RATON, Fla.--(BUSINESS WIRE)--May 14, 2018--Red Violet, Inc. (NASDAQ:RDVT), a leading information solutions provider, today announced financial results for the quarter ended March 31, 2018.
“We are pleased to report a strong start to 2018,” stated Derek Dubner, red violet’s CEO. “With our R&D phase behind us and a robust pipeline of new business and products to bring to market, we believe that we have more than ample cash to achieve profitability, which we expect to occur in the next several quarters. Given the improvement in various financial metrics and the outlook for our business, we are very optimistic about the remainder of 2018 and beyond.”
First Quarter Financial Results
For the three months ended March 31, 2018, as compared to the three months ended March 31, 2017:Total revenue increased 112% to $3.3 million. Net loss improved by $0.8 million to $2.1 million. Loss per share improved by $0.08 to $0.20. Adjusted gross profit increased 665% to $1.3 million. Adjusted gross margin increased to 39% from 11%. Adjusted EBITDA improved by $0.3 million to negative $1.4 million.
First Quarter and Recent Business HighlightsSuccessfully completed the spin-off of our business on March 26, 2018, with red violet operating as a NASDAQ-listed emerging growth company. Well-capitalized balance sheet, with approximately $20 million in cash as of March 31, 2018 and no debt, allowing the Company to intently focus on driving the business to profitability. With our early-stage development completed, including our proprietary, cloud-based technology platform, CORE™, and our initial suite of products released into the marketplace, monthly sales increased at a CAGR of 126% from a $5.8 million annual run-rate for the month ended January 31, 2017, to a $15.1 million annual run-rate for the month ended March 31, 2018. FOREWARN™, our subscription app-based solution for the real estate industry, powered by CORE, grew revenue at a CAGR of 660% in the first quarter 2018, representing an annual run-rate of $0.3 million for the month ended March 31, 2018, with no incremental cost of revenue. Fixed cost of revenue model allows for continued scaling of the business with exponential growth in adjusted gross profit, as reflected in the 28 percentage point increase in adjusted gross margin to 39%, over prior year quarter.
Adjusted gross profit, adjusted gross margin and adjusted EBITDA are non-GAAP financial measures. Reconciliation of these non-GAAP measures are provided in the attached tables.
About red violet™
At red violet, we believe that time is your most valuable asset. Through powerful analytics, we transform data into intelligence, in a fast and efficient manner, so that our clients can spend their time on what matters most - running their organizations with confidence. Through leading-edge, proprietary technology and a massive data repository, our data and analytical solutions harness the power of data fusion, uncovering the relevance of disparate data points and converting them into comprehensive and insightful views of people, businesses, assets and their interrelationships. We empower clients across markets and industries to better execute all aspects of their business, from managing risk, conducting investigations, identifying fraud and abuse, and collecting debts. At red violet, we are dedicated to making the world a safer place and reducing the cost of doing business. For more information, please visit www.redviolet.com.
This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipate,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether red violet’s fixed cost of revenue model allows for continued scaling of the business with exponential growth in adjusted gross profit; whether red violet has more than ample cash to achieve profitability, which is expected to occur in the next several quarters and whether given the improvement in various financial metrics, red violet is very optimistic about the remainder of 2018 and beyond. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking Statements” and “Risk Factors” in red violet’s Information Statement filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 27, 2018, as may be supplemented or amended by the Company’s Quarterly Reports on Form 10-Q and other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Use and Reconciliation of Non-GAAP Financial Measures
This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180514006174/en.