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Red Violet Inc (RDVT)
NASDAQ:RDVT
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Red Violet
(NASDAQ:RDVT)
78Outperform
Red Violet (RDVT) vs. S&P 500 (SPY)
Market Cap
$532.46M
Dividend YieldN/A
Average Volume (3M)98.13K
Price to Earnings (P/E)77.4
Beta (1Y)1.20
Revenue Growth24.89%
EPS Growth-47.85%
CountryUS
Employees215
SectorTechnology
Sector Strength50
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.49
Shares Outstanding13,938,623
10 Day Avg. Volume69,605
30 Day Avg. Volume98,126
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.16
Price to Cash Flow (P/CF)20.10
P/FCF Ratio16.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$43.00Price Target Upside15.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Red Violet Business Overview & Revenue Model
Company DescriptionRed Violet, Inc. (RDVT) operates within the information technology and data analytics sectors, providing identity verification and data analytics solutions. The company focuses on delivering actionable insights to its clients through its core products, including its proprietary technology platform, CORE, which aggregates and analyzes vast amounts of data to enable businesses to make informed decisions.
How the Company Makes MoneyRed Violet generates revenue primarily through subscription and usage-based fees for access to its data analytics platform and services. The company's key revenue streams include sales to businesses in industries such as finance, insurance, and government, which utilize its solutions for identity verification, fraud detection, and risk management. Additionally, significant partnerships with major industry players enhance its earnings potential by expanding its reach and customer base.
Red Violet Financial Statement Overview
Summary
Red Violet exhibits strong financial performance marked by significant revenue growth, improved profitability, and robust cash flow generation. Despite a slight decrease in profit margins, the company's low leverage and strong equity ratio ensure financial stability.Income Statement
Red Violet demonstrates strong revenue growth and profitability improvements. The gross profit margin increased significantly, reaching 81.39% in 2024, up from 78.28% in 2023, indicating efficient cost management. The net profit margin improved from 22.47% in 2023 to 9.31% in 2024, despite a slight decrease due to increased operational costs. EBIT and EBITDA margins also saw positive trends, reflecting enhanced operating performance.85
Very Positive
Balance Sheet
The company maintains a robust financial position with a low debt-to-equity ratio of 0.02 in 2024, indicating minimal leverage. ROE decreased to 8.08% from 15.71% in 2023, largely due to a decrease in net income. The equity ratio remains strong at 87.94%, suggesting financial stability and low reliance on debt financing.80
Positive
Cash Flow
Red Violet shows strong cash flow generation, with a substantial increase in free cash flow from $5.93 million in 2023 to $23.79 million in 2024, indicating effective cash management and investment strategies. The operating cash flow to net income ratio remains healthy, demonstrating efficient conversion of earnings into cash.87
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 75.19M | 60.20M | 53.32M | 44.02M | 34.59M |
| Gross Profit | ||||
| 61.19M | 47.13M | 41.11M | 32.83M | 23.31M |
| EBIT | ||||
| 7.92M | 2.50M | 361.00K | -3.49M | -6.83M |
| EBITDA | ||||
| 17.48M | 10.86M | 596.00K | 4.08M | -2.62M |
| Net Income Common Stockholders | ||||
| 7.00M | 13.53M | 616.00K | 655.00K | -6.79M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 36.50M | 32.03M | 31.81M | 34.26M | 12.96M |
| Total Assets | ||||
| 98.53M | 92.99M | 77.41M | 74.38M | 51.99M |
| Total Debt | ||||
| 2.00M | 2.57M | 1.29M | 1.91M | 4.61M |
| Net Debt | ||||
| -34.51M | -29.46M | -30.52M | -32.35M | -8.35M |
| Total Liabilities | ||||
| 11.90M | 6.88M | 6.32M | 4.95M | 8.65M |
| Stockholders Equity | ||||
| 86.63M | 86.11M | 71.09M | 69.43M | 43.34M |
| Cash Flow | Free Cash Flow | |||
| 23.79M | 5.92M | 3.63M | 3.70M | 857.00K |
| Operating Cash Flow | ||||
| 23.96M | 15.07M | 12.46M | 8.95M | 6.52M |
| Investing Cash Flow | ||||
| -9.57M | -9.15M | -8.83M | -5.24M | -5.66M |
| Financing Cash Flow | ||||
| -9.92M | -5.70M | -6.08M | 17.60M | 324.00K |
Red Violet Technical Analysis
Negative
37.33
Price Trends
38.10
Negative
36.88
Positive
31.73
Positive
Market Momentum
0.14
Negative
45.91
Neutral
34.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDVT, the sentiment is Negative. The current price of 37.33 is below the 20-day moving average (MA) of 37.96, below the 50-day MA of 38.10, and above the 200-day MA of 31.73, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDVT.
Red Violet Risk Analysis
Red Violet disclosed 32 risk factors in its most recent earnings report. Red Violet reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Red Violet Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $532.46M | 77.36 | 8.11% | ― | 24.89% | -47.85% | |
73 Outperform | $10.14B | 23.49 | 12.77% | ― | 15.05% | 31.05% | |
71 Outperform | £32.59B | 35.13 | 26.55% | 1.32% | 3.90% | 10.95% | |
69 Neutral | $16.05B | 56.88 | 6.91% | 0.51% | 9.20% | ― | |
64 Neutral | $41.32B | 43.91 | 463.98% | 0.53% | 7.47% | 59.46% | |
63 Neutral | $45.72B | 85.93 | -47.82% | ― | 14.49% | 21.85% | |
58 Neutral | $21.06B | 10.51 | -17.38% | 2.43% | 4.55% | -24.07% |
* Technology Sector Average
Performance Comparison
RDVT
Red Violet
37.33
17.88
91.93%
FICO
Fair Isaac
1,835.24
580.87
46.31%
NICE
NICE
155.48
-99.13
-38.93%
VRSK
Verisk Analytics
294.58
63.16
27.29%
TRU
TransUnion
82.25
3.52
4.47%
GB:EXPN
Experian
3,624.00
275.50
8.23%
Red Violet Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -1.81% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Red Violet reported a strong set of results for 2024 with record revenue and growth across all key financial metrics. The company successfully expanded its customer base and maintained momentum across diverse verticals, resulting in a positive outlook for 2025. Despite increased operating expenses, the financial performance was notably strong, leading to a positive overall sentiment.Highlights
Record Revenue Growth
Red Violet achieved record revenue growth in 2024 with 25% yearly increase, driven by 30% growth in the fourth quarter alone, marking new records for each quarter of the year.
Strong Adjusted EBITDA and Margin
Adjusted EBITDA for the fourth quarter increased by 68% to $4.5 million, with an adjusted EBITDA margin of 23%. For the full year, adjusted EBITDA was $23.6 million with a 31% margin.
Significant Customer Base Expansion
IDI's customer base grew to 8,926 customers and FOREWARN added over 18,000 users, ending the year with 303,418 users and over 525 realtor associations contracted.
Improved Financial Metrics
Adjusted net income increased 390% to $1.3 million in Q4 with adjusted earnings of $0.09 per diluted share. Free cash flow grew 143% to $14.4 million in 2024.
Diversified Vertical Growth
Growth across all verticals, including double-digit revenue growth in financial, corporate risk, investigative, and collections verticals. FOREWARN achieved its 19th consecutive quarter of sequential growth.
Lowlights
Increased Operating Expenses
Sales and marketing expenses increased by 40% and general and administrative expenses by 21% in the fourth quarter due to higher personnel-related costs.
Decreased Contractual Revenue Percentage
Contractual revenue decreased by 5 percentage points to 77% in the fourth quarter compared to the previous year.
Company Guidance
During the fourth quarter and full year 2024 earnings call, Red Violet highlighted impressive financial performance with several key metrics. The company achieved a record $19.6 million in revenue for the fourth quarter, marking a 30% year-over-year increase, and a total annual revenue of $75.2 million with a 25% increase. The adjusted gross profit reached $16.1 million for the quarter, reflecting an 82% margin, while the adjusted EBITDA rose by 68% to $4.5 million with a 23% margin. The annual adjusted EBITDA margin stood at 31%. Additionally, adjusted net income for the quarter surged 390% to $1.3 million, equating to adjusted earnings of $0.09 per diluted share. The company experienced strong customer growth, with the IDI billable customer base increasing by 183 to 8,926, and FOREWARN adding over 18,000 users, totaling 303,418. Red Violet also reported generating $14.4 million in free cash flow for the year, a significant increase from $5.9 million in 2023. Cash reserves were robust at $36.5 million as of December 31, 2024. The company emphasized its strategic focus on customer-centricity, expanding its cloud-native platform, enriching data assets, and leveraging AI for automation and innovation to sustain growth into 2025 and beyond.Red Violet Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Red Violet Appoints Greg Strakosch to Board
Positive
Mar 5, 2025
On March 3, 2025, Peter Benz resigned from the Board of Directors of Red Violet, Inc. to pursue other business commitments, with no disagreements related to the company’s operations or policies. Greg Strakosch, a seasoned executive with a strong background in technology businesses, was appointed to fill the vacancy effective March 4, 2025. His appointment is expected to enhance Red Violet’s strategic initiatives and market presence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.