Business
red violet Announces Third Quarter 2020 Financial Results
Strong Sequential Revenue Growth Fuels Record Gross Profit BOCA RATON, Fla., Nov. 10, 2020 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading
About this update from Red Violet, Inc.
[{"type":"text","content":"Strong Sequential Revenue Growth Fuels Record Gross Profit\n BOCA RATON, Fla., Nov. 10, 2020 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended September 30, 2020. “We delivered another strong quarter during an incredibly challenging time, further demonstrating the applicability of our technology and solutions across diverse markets and industries, as well as the necessity of integrating our solutions to enable better data-driven decisioning,” stated Derek Dubner, red violet’s CEO. “The momentum we experienced exiting the second quarter continued throughout the third quarter, generating a 31% sequential increase in revenue to $9.3 million and 130% sequential increase in adjusted EBITDA to a record $2.1 million. I am extremely proud of the performance of our team and remain optimistic in our ability to continue to drive growth for the foreseeable future.” Third Quarter Financial Results For the three months ended September 30, 2020 as compared to the three months ended September 30, 2019: Total revenue increased 12% to $9.3 million. Platform revenue increased 27% to $9.0 million. Services revenue decreased 75% to $0.3 million.Net loss narrowed 7% to $0.9 million.Adjusted EBITDA increased 84% to $2.1 million.Gross profit increased 24% to $5.5 million. Gross margin increased to 59% from 54%.Adjusted gross profit increased 28% to $6.6 million. Adjusted gross margin increased to 71% from 62%.Generated $1.7 million in cash from operating activities in the third quarter.Cash and cash equivalents were $12.4 million as of September 30, 2020. Third Quarter and Recent Business Highlights Our high-margin, platform revenue demonstrated accelerated growth throughout the third quarter. As a result, we generated a record 71% adjusted gross margin, producing a record adjusted gross profit of $6.6 million. Adjusted EBITDA increased 84% over prior year and increased 130% on a sequential quarter basis to $2.1 million.Increased customer adoption of idiCORE™ with over 380 new customers added to the platform in the third quarter.FOREWARN®, our subscription app-based real estate solution, added over 4,000 users in the third quarter.Strong revenue growth from existing customer expansion. Growth revenue from existing customers increased 116% ...