Business
red violet Announces First Quarter 2020 Financial Results
Revenue Increases 62% to a Record $9.3 Million with Strong Margin Expansion and Positive Cash Flow from Operations BOCA RATON, Fla., May 11, 2020 (GLOBE
About this update from Red Violet, Inc.
[{"type":"text","content":"Revenue Increases 62% to a Record $9.3 Million with Strong Margin Expansion and Positive Cash Flow from Operations\nBOCA RATON, Fla., May 11, 2020 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended March 31, 2020.\n “We are pleased to report a ninth consecutive record quarter, achieving revenue of $9.3 million and adjusted EBITDA of $1.7 million, notwithstanding the impact to our business of Covid-19 in the back half of March. In order to ensure the safety of our employees, customers, vendors, and shareholders, we invoked our contingency planning and implemented teleworking from home across the organization as well as halting all company travel,” stated Derek Dubner, red violet’s CEO. “In the second half of March, we experienced reduced transactional volume as customers adjusted to the effects of this unprecedented event. We have put into effect prudent cost containment strategies and are proactively working with affected customers to foster enduring relationships. As stay-at-home orders are lifting and economic pressures subside, we are well-positioned for pent-up customer demand resulting from these transitory impacts and are executing upon opportunities to capture market share in markets that are currently seeing increasing demand for our solutions. Our business was as strong as ever heading into this external event and we are confident in our ability to navigate this period. I am extremely proud of the performance of our team and the business overall during this challenging time and am looking forward to accelerated growth as the economy regains its footing.” First Quarter Financial Results For the three months ended March 31, 2020 as compared to the three months ended March 31, 2019: Total revenue increased 62% to $9.3 million.Net loss was $1.5 million (including share-based compensation expense of $2.2 million) as compared to $1.4 million (including share-based compensation expense of $0.3 million).Adjusted EBITDA was $1.7 million as compared to a negative $0.4 million.Gross profit increased 105% to $5.2 million. Gross margin increased to 55% from 44%.Adjusted gross profit increased 96% to $6.0 million. Adjusted gross margin increased to 65% from 53%.Generated $1.2 million in cash from operating activities in t...