red violet Announces Second Quarter 2018 Financial Results
Aug. 08, 2018
BOCA RATON, Fla.--(BUSINESS WIRE)--Aug 8, 2018--Red Violet, Inc. (NASDAQ: RDVT), a leading information solutions provider, today announced financial results for the quarter ended June 30, 2018.
“With continued strong growth in all of our key financial indicators, we are as confident as ever in our path to profitability,” stated Derek Dubner, red violet’s CEO. “As our cost of revenue remains relatively fixed, we are intently focused on driving revenue with nearly 100% of each incremental dollar in revenue growth flowing through to the bottom line as evidenced by our $0.6 million increase in revenue resulting in a $0.6 million reduction in our net loss over first quarter 2018.”
Second Quarter Financial Results
For the three months ended June 30, 2018, as compared to the three months ended June 30, 2017:Total revenue increased 96% to $3.9 million. Net loss improved by $10.6 million to $1.5 million. Loss per share improved by $1.03 to $0.15. Adjusted gross profit increased 1,117% to $1.8 million. Adjusted gross margin increased to 47% from 8%. Adjusted EBITDA improved by $1.3 million to negative $1.1 million.
Second Quarter and Recent Business HighlightsMonthly revenue increased at a CAGR of 126% over the first six months of 2018 with an annual revenue run rate of $17.2 million for the month ended June 30, 2018. Recurring revenue continues to expand with 60% of monthly revenue attributable to customer contracts versus transactional usage. Contracts are generally annual contracts with auto renewal. Business continues to scale towards profitability as adjusted gross profit grew at a CAGR of 532% over the first six months of 2018, resulting in an annual adjusted gross profit run rate of $9.2 million for the month ended June 30, 2018. FOREWARN ®, our subscription app-based solution for the real estate industry, powered by CORE™, grew revenue at a CAGR of 642% over the first six months of 2018, with an annual run rate of $0.5 million for the month ended June 30, 2018.
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, due to strong growth in red violet’s key financial indicators, red violet will become profitable. 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.
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