Business
red violet Announces Second Quarter 2020 Financial Results
Strong Business Model Demonstrates Resilience By Generating Record $1.8 Million in Positive Cash Flow from Operations Business Experiencing Positive Trends
About this update from Red Violet, Inc.
[{"type":"text","content":"Strong Business Model Demonstrates Resilience By Generating Record $1.8 Million in Positive Cash Flow from Operations\n Business Experiencing Positive Trends Since April and Continuing Into Third Quarter BOCA RATON, Fla., Aug. 11, 2020 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended June 30, 2020. “red violet demonstrated the strength of its business model, generating a record $1.8 million in positive cash flow from operations despite the economic challenges of the pandemic during the quarter,” stated Derek Dubner, red violet’s CEO. “Our next-generation technology platform, mission-critical product suite, differentiated data assets, and incredible team delivered sequentially improving financial and business results from the economic trough that occurred early in the second quarter. We continue to experience improving conditions in our business and given the present economic and secular tailwinds that we expect to continue, we believe we are well-positioned for the second half of the year and throughout 2021.” “During this unprecedented period, we implemented a multi-prong strategy to ensure the long-term success of our business --- helping our customers, ensuring the health and financial well-being of our team members, gaining market share, continuing advancement in technology and products and fortifying our balance sheet. We provided temporary assistance to customers, solidifying relationships and demonstrating our commitment to their success. We did not reduce any personnel as a result of the pandemic; to the contrary, we are selectively adding to the team. Presented with the opportunity to capture market share where organizations are increasingly demanding greater efficiencies and ROI within their workflow to offset the negative impacts of the pandemic, new customer applications in June exceeded pre-pandemic levels, followed by July exceeding June by 8%.” “Focusing on the operational leverage of our business model, we more than doubled our adjusted EBITDA on less revenue. Our high-margin platform revenue was up 11% over prior year, offsetting the decline in our services revenue by contributing more profitable dollars to the bottom line.” “I am extremely proud of the performance of our team and the business duri...