Red Violet, Inc. · NASDAQ:RDVT
Red Violet — Investor Presentation (November 2023)
25 slides from Red Violet's investor presentation, November 2023
Slide 1: Company Overview
Company Overview November 2023 © Red Violet, Inc. All Rights Reserved.
Slide 2: Cautionary Statement
Cautionary Statement This presentation 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," "shou
Slide 3: red violet at a Glance
red violet at a Glance Most Advanced Identity Intelligence Platform Cloud-native platform delivering greater intelligence and unparalleled insight for decision-making capabilities March 26, 2018 $58M Scalable and Efficient Initial Listing TTM Revenue(1) Quick and cost-effective deployment that is sc
Slide 4: Seasoned Management Team With Deep Data and Analytics Industry Experience
Seasoned Management Team With Deep Data and Analytics Industry Experience Name and Title Biography Prior Experience ▪ Over 20 years of experience in the data and analytics industry Derek Dubner CEO ▪ Built leading information management companies which sold for an aggregate value of approximately $1
Slide 5: Challenges That Businesses Are Facing Today
Challenges That Businesses Are Facing Today Organizations are challenged by the structure, volume and disparity of data. Our platform and applications transform the way customers interact with information, presenting connections and relevance of information otherwise unattainable, which drives actio
Slide 6: Our Intelligent Platform – CORE
Our Intelligent Platform – CORE TM Disparate Data Identity Intelligence Financial: With massive data assets consisting of ▪ Identity Verification / Fraud Prevention public record, proprietary and publicly- ▪ Collections Activity available data, our differentiated ▪ AML, KYC, BSA Efforts information
Slide 7: red violet Plays in a Large and Fast-Growing TAM
red violet Plays in a Large and Fast-Growing TAM $10B # of Businesses(1) red violet’s Bottom-Up TAM(4) $90B Global Big Data & Analytics Software Revenue(3) 90,000 ( 35% Avg. ) ( Penetration $180k Avg. ACV ) $5.7B $30B Global Analytics and 100,000 ( 36% Avg. ) ( Penetration $75k Avg. ACV ) $2.7B Busi
Slide 8: Our Business Model Provides a Compelling Investment Opportunity
Our Business Model Provides a Compelling Investment Opportunity Next-Generation Technology Platform ✓ Proprietary data and industry agnostic platform drives cost efficient solutions across industries Differentiated Owned Data Asset ✓ Massive proprietary datasets of alternative and internally generat
Slide 9: Our Brands
Our Brands The Value of Instant Due Diligence with FOREWARN: coreIDENTITY™ is a comprehensive idiTRACE™ is a premier source of suite of identity solutions that applicant address and alias history, Using as little as an incoming phone number, encompasses the full customer identity maximizing match ra
Slide 10: Growth Drivers
Growth Drivers RAPIDLY GROWING AMOUNTS OF DISPARATE DATA MACRO TAILWINDS WORLDWIDE DIGITAL TRANSFORMATION INCREASING RATES OF FRAUD Expansion ▪ Expanding product suite will allow for entrance into new verticals and geographic markets Custom Solutions ▪ Introduction of additional sales ▪ Solve comple
Slide 11: Case Studies
Case Studies 1 Identity Verification, Fraud Prevention & Frictionless Commerce Multinational Financial Services Company Comprehensive identity data and insights are needed to reduce friction, improve conversions, and combat fraud This customer, a $350 billion financial services company, realized the
Slide 12: Case Studies (Cont’d)
Case Studies (Cont’d) 3 Background Screening Leading Global Data & Analytics Company Timely and accurate information is critical to keep workplaces and businesses safe Customer needed a high-volume performant information solution to validate identity and fully profile applicant location historie s i
Slide 13: Differentiation – red violet’s Intelligent Platform
Differentiation – red violet’s Intelligent Platform Advanced, fully-automated identity 1 Technology intelligence platform designed to be used at scale with the help of machine learning CORE conducts analysis of billions of data 2 Data points to identify complex interrelationships Automated monitorin
Slide 14: Differentiation – Technology
Differentiation – Technology 1 Harnessing the power of CORE, we have created the most advanced and performant identity intelligence platform. Next-Generation Platform Data Analytics and Engineering Proprietary, scalable, distributed memory, data Data unification/entity resolution at scale processing
Slide 15: Differentiation – Massive Unified Data Asset
Differentiation – Massive Unified Data Asset 2 Disparate Data Sources CORE Platform Actionable Intelligence Automotive Email & Death IP Mobile Social Financial Bankruptcies, Liens, Employment & Judgments Military Behavioral Criminal Property Predictive Relationships Actionable Location Intelligence
Slide 16: Differentiation – Scalability and Availability
Differentiation – Scalability and Availability 3 We uncover the relevance of disparate data points utilizing our analytical capabilities to provide real- time and insightful views of people, businesses, assets and their interrelationships. Handling burst rates Flexible APIs built to Online access of
Slide 17: Differentiation – Security
Differentiation – Security 4 Built in a secure payment card industry (PCI) compliant cloud environment, we operate in data centers across the U.S. using an intelligent framework and leveraging a microservices architecture. Leading-Edge Security Features Secure Environment 1 Processing of over 100 GB
Slide 18: Why We Win
Why We Win Cloud-native technology platform providing the most Scalable and Intelligent advanced and performant identity intelligence Customizable Interface Solutions Design Massively scalable and customizable platform meeting Dynamic & the high-volume needs of customers Customer- Seamless Centric S
Slide 19: Scalable Go-To-Market Strategy
Scalable Go-To-Market Strategy ▪ New opportunities are sourced from each of the 3 primary channels below New Customer Acquisition ▪ Once the opportunity is qualified and credentialed for proper use case, they generally begin with a free trial ▪ The free trial is followed by an initial purchase on a
Slide 20: Financial Highlights
Financial Highlights $53.3M 44% 79% 2017 - 2022 2022 Revenue Q3’23 Adj. Gross Margin Revenue CAGR 34% 78% 94% TTM Q3’23 Contractual Q3’23 Gross Revenue Q3’23 Adj. EBITDA Margin Revenue Retention 20 © Red Violet, Inc. All Rights Reserved.
Slide 21: Robust Top-Line Momentum & Building Substantial Operating Leverage
Robust Top-Line Momentum & Building Substantial Operating Leverage Revenue and Adj. Gross Margin Adj. EBITDA ($ in millions) ($ in millions) Adj. Gross Margin(1) ’17 – ’22 Adj. EBITDA Margin(1) Revenue CAGR: 44% Adj. EBITDA(1) 77.1% 74.6% 67.4% $53.3 24.8% 24.1% 59.5% 17.1% 6.3% $44.0 $12.9 47.0% (2
Slide 22: Strong Unit Economics Underpin Financial Model Leverage
Strong Unit Economics Underpin Financial Model Leverage Revenue and Adj. Gross Margin Adj. EBITDA ($ in millions) ($ in millions) Adj. Gross Margin(1) Adj. EBITDA Margin(1) Revenue Adj. EBITDA(1) 79.6% 34.5% 78.3% 77.9% 79.1% 31.6% 33.9% 76.6% 76.6% 31.0% 76.1% 28.1% 28.8% 75.0% 75.1% $15.8 74.0% 25
Slide 23: Appendix
Appendix © Red Violet, Inc. All Rights Reserved.
Slide 24: Use and Reconciliation of Non-GAAP Financial Measures
Use and Reconciliation of Non-GAAP Financial Measures Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross margin and FCF. Adjusted EBITDA is a finan
Slide 25: Supplemental Metrics and Definitions
Supplemental Metrics and Definitions The following metrics are intended as a supplement to the financial information found in this presentation and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amount